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What changed in MYR GROUP INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of MYR GROUP INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+202 added−207 removedSource: 10-K (2025-02-26) vs 10-K (2024-02-28)

Top changes in MYR GROUP INC.'s 2024 10-K

202 paragraphs added · 207 removed · 178 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

24 edited+1 added−0 removed95 unchanged
Biggest changeCooper served as group vice president, east of MYR Group from 2009 to 2013 and vice president T&D, east of MYR Group from 2006 to 2009. Mr. Cooper has held a number of additional positions since joining us in 1989, including business development manager, regional manager, district manager, and estimator. Don A.
Biggest changeStern has held a number of additional positions at the Company from 2010 to 2017, including regional vice president and district manager. Prior to joining us, Mr. Stern served as director of financial analysis at a leading T&D competitor from 2006 to 2010. Mr. Stern served as our market analyst from 2001 to 2006. Don A.
Although the impact of climate change regulations on our business will depend on the specifics of governmental policies, legislation, and regulation, we believe that we are well-positioned to adapt our business to meet new regulations.
Although the impact of climate change regulations on our business will ultimately depend on the specifics of governmental policies, legislation, and regulation, we believe that we are well-positioned to adapt our business to meet new regulations.
These strategies, objectives and measures are advanced through a number of programs, policies and initiatives, including those related to: health and safety; inclusion, diversity, and equality; employee recruitment, training and development; and compensation and benefits programs. 9 TABLE OF CONTENTS We seek to attract and retain highly qualified craft employees by providing a superior work environment through our emphasis on safety, competitive compensation, and a high-quality fleet of equipment.
These strategies, objectives and measures are advanced through a number of programs, policies and initiatives, including those related to: health and safety; inclusion; employee recruitment, training and development; and compensation and benefits programs. 9 TABLE OF CONTENTS We seek to attract and retain highly qualified craft employees by providing a superior work environment through our emphasis on safety, competitive compensation, and our high-quality fleet of equipment.
Approximately 84% of our craft employees are members of unions, with the majority being members of the International Brotherhood of Electrical Workers (“IBEW”), who are represented by many local unions under agreements with generally uniform terms and varying expiration dates.
Approximately 87% of our craft employees are members of unions, with the majority being members of the International Brotherhood of Electrical Workers (“IBEW”), who are represented by many local unions under agreements with generally uniform terms and varying expiration dates.
Larger transmission projects generally require specialized heavy duty equipment as well as strong financial resources to meet the cash flow, bonding or letter of credit requirements of these projects. These factors sometimes reduce the number of potential competitors on these projects.
Larger T&D projects generally require specialized heavy duty equipment as well as strong financial resources to meet the cash flow, bonding or letter of credit requirements of these projects. These factors sometimes reduce the number of potential competitors on these projects.
Fry 49 Vice President, Chief Legal Officer and Secretary Richard S. Swartz was appointed president and chief executive officer in January 2017 and has served as a member of our Board of Directors since April 2019.
Fry 50 Senior Vice President, Chief Legal Officer and Secretary Richard S. Swartz was appointed president and chief executive officer in January 2017 and has served as a member of our Board of Directors since April 2019.
Fry joined us as vice president, chief legal officer and secretary in January 2019. Prior to joining us, Mr. Fry served as vice president - legal for Team Inc., a specialty industrial service, engineering and manufacturing company, from 2016 to 2018. Mr.
Fry joined us as vice president, chief legal officer and secretary in January 2019 and became senior vice president, chief legal officer and secretary in March 2024. Prior to joining us, Mr. Fry served as vice president - legal for Team Inc., a specialty industrial service, engineering and manufacturing company, from 2016 to 2018. Mr.
There are a number of barriers to entry into the transmission and distribution markets, including the cost of equipment and tooling necessary to perform transmission work, availability of qualified labor, scope of typical transmission projects and technical, managerial and supervisory skills necessary to complete the job.
There are a number of barriers to entry into the T&D markets, including the cost of equipment and tooling necessary to perform T&D work, availability of qualified labor, scope of typical T&D projects and technical, managerial and supervisory skills necessary to complete the job.
For the years ended December 31, 2023, 2022 and 2021, revenues derived from T&D customers accounted for 57.3%, 58.0% and 52.1% of our total revenues, respectively, and revenues derived from C&I customers accounted for 42.7%, 42.0% and 47.9% of our total revenues, respectively. Types of Service Arrangements and Bidding Process We enter into contracts principally through a competitive bid process.
For the years ended December 31, 2024, 2023 and 2022, revenues derived from T&D customers accounted for 55.9%, 57.3% and 58.0% of our total revenues, respectively, and revenues derived from C&I customers accounted for 44.1%, 42.7% and 42.0% of our total revenues, respectively. Types of Service Arrangements and Bidding Process We enter into contracts principally through a competitive bid process.
For the years ended December 31, 2023, 2022 and 2021, our top 10 customers accounted for 37.9%, 35.4%, and 34.9%, of our revenues, respectively. For the years ended December 31, 2023, 2022 and 2021, no single customer accounted for more than 10.0% of annual revenues.
For the years ended December 31, 2024, 2023 and 2022, our top 10 customers accounted for 37.8%, 37.9%, and 35.4%, of our revenues, respectively. For the years ended December 31, 2024, 2023 and 2022, no single customer accounted for more than 10.0% of annual revenues.
We believe that we have a favorable competitive position in the markets that we serve, due in part to our operating history, local market share, our reputation and our relationships with our customers.
We believe that we have a favorable competitive position in the C&I markets that we serve, due in part to our operating history, local market share, our reputation, our relationships with our customers and our financial strengths.
Our backlog as of December 31, 2023 and 2022 included our proportionate share of unconsolidated joint venture backlog totaling $18.9 million and $30.8 million, respectively. 7 TABLE OF CONTENTS Trade Names and Intellectual Property We operate in the United States under a number of trade names, including: The L. E.
Our backlog as of December 31, 2024 and 2023 included our proportionate share of unconsolidated joint venture backlog totaling $172.3 million and $18.9 million, respectively. 7 TABLE OF CONTENTS Trade Names and Intellectual Property We operate in the United States under a number of trade names, including: The L. E.
As of December 31, 2022, we had approximately $541.5 million in original face amount of bonds outstanding for projects in our T&D segment and approximately $1.43 billion for projects in our C&I segment. The ability to post bonds provides us with a competitive advantage over smaller or less financially secure competitors.
As of December 31, 2023, we had approximately $683.4 million in original face amount of bonds outstanding for projects in our T&D segment and approximately $1.76 billion for projects in our C&I segment. The ability to post bonds provides us with a competitive advantage over smaller or less financially secure competitors.
As of December 31, 2023, we had approximately $683.4 million in original face amount of bonds outstanding for projects in our T&D segment and approximately $1.76 billion for projects in our C&I segment. Our estimated remaining cost to complete these bonded projects for both segments was approximately $726.1 million as of December 31, 2023.
As of December 31, 2024, we had approximately $416.3 million in original face amount of bonds outstanding for projects in our T&D segment and approximately $1.86 billion for projects in our C&I segment. Our estimated remaining cost to complete these bonded projects for both segments was approximately $662.6 million as of December 31, 2024.
Huntington worked for Indianapolis Power & Light Company, an electrical utility and subsidiary of The AES Corporation, serving as president and chief executive officers from 2013 to 2015, as senior vice president and chief financial officer from 2011 to 2013 and various other from since 2003. Ms. Huntington also currently serves on the Board of Directors of Capital Power.
Huntington worked for Indianapolis Power & Light Company, an electrical utility and subsidiary of The AES Corporation, serving as president and chief executive officers from 2013 to 2015, as senior vice president and chief financial officer from 2011 to 2013 and in various other leadership positions from 2003 to 2011. Ms.
As of December 31, 2023, we had approximately 9,000 employees, consisting of approximately 7,300 craft employees, with the remaining 1,700 employees mainly consisting of district managers, project managers, superintendents, estimators, office managers, administrative staff, clerical personnel and executive officers.
As of December 31, 2024, we had approximately 8,500 employees, consisting of approximately 6,800 craft employees, with the remaining 1,700 employees mainly consisting of district managers, project managers, superintendents, estimators, office managers, administrative staff, clerical personnel and executive officers.
Fixed-price contracts accounted for 65.2% of total revenue for the year ended December 31, 2023, including 52.7% of our total revenue for our T&D segment and 82.0% of our total revenue for our C&I segment. Our EPC contracts are typically fixed-price and may be entered into through joint ventures.
Fixed-price contracts accounted for 60.3% of total revenue for the year ended December 31, 2024, including 43.9% of our total revenue for our T&D segment and 81.2% of our total revenue for our C&I segment. Our EPC contracts are typically fixed-price and may be entered into through joint ventures.
Additionally, there are significant environmental regulations under consideration to encourage the use of clean energy technologies and regulate emissions of greenhouse gases to address climate change. We regularly monitor the various proposals in this regard.
Additionally, there are significant existing and proposed environmental regulations in the jurisdictions where we do business that are designed to encourage the use of clean energy technologies and regulate emissions of greenhouse gases to address climate change. We regularly monitor the various proposals and changes to laws in this regard.
Information about our Executive Officers Name Age on February 28, 2024 Position Richard S. Swartz 60 President and Chief Executive Officer Kelly M. Huntington 48 Senior Vice President and Chief Financial Officer Tod M. Cooper 59 Senior Vice President, Chief Operating Officer T&D Don A. Egan 53 Senior Vice President, Chief Operating Officer C&I William F.
Information about our Executive Officers Name Age on February 26, 2025 Position Richard S. Swartz 61 President and Chief Executive Officer Kelly M. Huntington 49 Senior Vice President and Chief Financial Officer Brian K. Stern 55 Senior Vice President, Chief Operating Officer T&D Don A. Egan 54 Senior Vice President, Chief Operating Officer C&I William F.
We believe that we have a favorable competitive position in the T&D markets that we serve, due in part to our operating history, our financial strength, our reputation and our relationships with our customers. C&I Competition Our C&I segment predominately competes with a number of regional or local firms and with subsidiaries of national firms.
We believe that we have a favorable competitive position in the T&D markets that we serve, due in part to our operating history, our financial strength, our reputation and our relationships with our customers.
The number of firms that generally compete for any one significant transmission infrastructure project varies greatly depending on a number of factors, including the size of the project, its location and the bidder qualification requirements imposed upon contractors by the customer. Some of our competitors restrict their operations to one geographic area while others operate nationally and internationally.
The number of firms that generally compete for any one significant T&D infrastructure project varies greatly depending on a number of factors, including the size of the project, its location and the bidder qualification requirements imposed upon contractors by the customer.
Subject to the foregoing discussions, the following table summarizes our estimate of backlog that we believe to be firm as of the dates shown and the backlog that we reasonably estimate will be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months: Backlog at December 31, 2023 (in thousands) Total Amount estimated to be recognized within 12 months Amount estimated to be recognized after 12 months Total backlog at December 31, 2022 T&D $ 959,553 $ 913,190 $ 46,363 $ 1,065,476 C&I 1,552,846 1,165,070 387,776 1,436,351 Total $ 2,512,399 $ 2,078,260 $ 434,139 $ 2,501,827 Changes in backlog from period to period are primarily the result of fluctuations in the timing of awards and revenue recognition of contracts.
Subject to the foregoing discussions, the following table summarizes our estimate of backlog that we believe to be firm as of the dates shown and the backlog that we reasonably estimate will be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months: Backlog at December 31, 2024 (in thousands) Total Amount estimated to be recognized within 12 months Amount estimated to be recognized after 12 months Total backlog at December 31, 2023 T&D $ 818,185 $ 806,239 $ 11,946 $ 959,553 C&I 1,758,233 1,274,084 484,149 1,552,846 Total $ 2,576,418 $ 2,080,323 $ 496,095 $ 2,512,399 Changes in backlog from period to period are primarily the result of fluctuations in the timing of awards and revenue recognition of contracts.
There are few significant barriers to entry in the C&I markets, and there are a number of small companies that compete for C&I business. The size, location and technical requirements of the project will impact which competitors we will encounter when bidding on any particular project.
C&I Competition Our C&I segment predominately competes with a number of companies in the local markets where we operate, ranging from small local independent companies, to medium size regional firms, to large national competitors. The size, location and technical requirements of the project will impact which competitors we will encounter when bidding on any particular project.
Tod M. Cooper was appointed senior vice president and chief operating officer of our T&D segment in January 2017. Prior to his current role, he served as senior vice president of MYR Group from August 2013 to December 2016. Mr.
Huntington also currently serves on the board of directors of Capital Power Corporation. Brian K. Stern was appointed senior vice president and chief operating officer of our T&D segment in March 2024. Prior to his current role, he served as group vice president and a member of the company’s executive leadership team since 2017. Mr.
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Additionally, our ability to compete in our T&D markets is aided by our capacity to scale and flex for our customer's need. Some of our competitors restrict their operations to one geographic area while others operate nationally and internationally.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

46 edited+9 added−6 removed163 unchanged
Biggest changeThe failure of these systems to operate effectively or problems with transitioning to upgraded or replacement systems could cause delays and reduce the efficiency of our operations, which could have a material adverse effect on our business, financial position, results of operations and cash flows, and significant costs could be incurred to remediate any problem. 23 TABLE OF CONTENTS Increased IT security threats and more sophisticated computer crimes, including advanced persistent threats, computer viruses, ransomware, other types of malicious code, hacking, phishing and social engineering schemes designed to provide access to our networks or data, pose a potential risk to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our data.
Biggest changeIncreased IT security threats and more sophisticated computer crimes, including advanced persistent threats, computer viruses, ransomware, other types of malicious code, hacking, phishing and social engineering schemes designed to provide access to our networks or data, pose a potential risk to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our data.
Additionally, our results may be materially and adversely affected by: • the timing and volume of work under contract; • increased competition and changes in the competitive marketplace for our services; • the spending patterns of customers and governments; • safety performance and reputation; • increased costs of performance of our services caused by adverse weather conditions; • cost overruns on fixed-price and unit-price contracts; • decreased equipment utilization; • delays on projects due to permitting, regulatory issues or customer-caused delays; • disputes with customers relating to payment terms under our contracts and change orders, and our ability to successfully negotiate and obtain payment or reimbursement under our contracts and change orders; • variations in the margins of projects performed during any particular reporting period; • changes in the demand for our services; • schedule delays, equipment and materials availability and increasing insurance, equipment, labor and material costs related to supply chain disruptions, inflationary pressures, recessionary conditions, tariffs, regulatory slowdowns and market disruptions; • the timing and integration of acquisitions and the magnitude of the related acquisition and integration costs; • the loss of a major customer; • changes in the mix of our customers, contracts and business; • the amount of subcontractor and material costs in our projects; • payment risk associated with the financial condition of our customers; • increases in design, construction and operating costs, due to inflation or other unforeseen causes, that we are unable to pass through to our customers; • the termination or expiration of existing agreements; • regional and general economic conditions and the condition of the financial markets; • losses experienced in our operations not otherwise covered by insurance; • costs we incur to support growth internally or otherwise; • availability of qualified labor for specific projects; 11 TABLE OF CONTENTS • supply chain interruptions, including as a result of natural disasters, wildfires, weather, labor disputes, wars, pandemic outbreak of disease, fire or explosions and power outages; • liabilities associated with participation in joint ventures related to third party failures; • the inability to secure sufficient funding to finance continuing operations, fund growth or to provide the required financial resources certain large projects may require; • significant fluctuations in foreign currency exchange rates; • significant fluctuations in interest rates; • changes in bonding requirements applicable to existing and new agreements; • costs associated with our multi-employer pension plan obligations; • the availability or increased cost of equipment; • impairment of goodwill or intangible assets; and • warranty claims.
Additionally, our results may be materially and adversely affected by: • the timing and volume of work under contract; • increased competition and changes in the competitive marketplace for our services; • the spending patterns of customers and governments; • safety performance and reputation; • increased costs of performance of our services caused by adverse weather conditions; • cost overruns on fixed-price and unit-price contracts; • decreased equipment utilization; • delays on projects due to permitting, regulatory issues or customer-caused delays; • disputes with customers relating to payment terms under our contracts and change orders, and our ability to successfully negotiate and obtain payment or reimbursement under our contracts and change orders; • variations in the margins of projects performed during any particular reporting period; • changes in the demand for our services; • schedule delays, equipment and materials availability and increasing insurance, equipment, labor and material costs related to supply chain disruptions, inflationary pressures, recessionary conditions, tariffs, regulatory slowdowns and market disruptions; • the timing and integration of acquisitions and the magnitude of the related acquisition and integration costs; • the loss of a major customer; • changes in the mix of our customers, contracts and business; • the amount of subcontractor and material costs in our projects; • payment risk associated with the financial condition of our customers or others; • increases in design, construction and operating costs, due to inflation or other unforeseen causes, that we are unable to pass through to our customers; • the termination or expiration of existing agreements; • regional and general economic conditions and the condition of the financial markets; • losses experienced in our operations not otherwise covered by insurance; • costs we incur to support growth internally or otherwise; • availability of qualified labor for specific projects; 11 TABLE OF CONTENTS • supply chain interruptions, including as a result of natural disasters, wildfires, weather, labor disputes, wars, pandemic outbreak of disease, fire or explosions and power outages; • liabilities associated with participation in joint ventures related to third party failures; • the inability to secure sufficient funding to finance continuing operations, fund growth or to provide the required financial resources certain large projects may require; • significant fluctuations in foreign currency exchange rates; • unfavorable changes in tax laws or tax rates; • significant fluctuations in interest rates; • changes in bonding requirements applicable to existing and new agreements; • costs associated with our multi-employer pension plan obligations; • the availability or increased cost of equipment; • impairment of goodwill or intangible assets; and • warranty claims.
Current and future legislative or regulatory actions may impact demand for our services, require utilities to meet reliability standards, and encourage installation of new electric transmission and clean energy generation facilities. However, it is unclear whether these initiatives will create sufficient incentives for projects or result in increased demand for our services.
Current and future legislative or regulatory actions may impact demand for our services, require utilities to meet reliability standards, and encourage installation of new electric transmission, distribution and clean energy generation facilities. However, it is unclear whether these initiatives will create sufficient incentives for projects or result in increased demand for our services.
These risks could restrict our ability to provide services to Canadian customers or to operate our Canadian business profitably, and could negatively impact our results. We also are exposed to currency risks relating to the translation of certain monetary transactions, assets and liabilities. Changes in tax laws or our interpretations of tax laws could materially impact our income tax liabilities.
These risks could restrict our ability to provide services to Canadian customers or to operate our Canadian business profitably, and could negatively impact our results. We also are exposed to currency risks relating to the translation of certain monetary transactions, assets and liabilities. Changes in tax laws or our interpretations of tax laws could materially impact our tax liabilities.
We have in the past and may in the future experience difficulties in acquiring equipment or materials due to supply chain interruptions, including as a result of natural disasters, weather, labor disputes, pandemic outbreak of disease, fire or explosions and power outages.
We have in the past and may in the future experience difficulties in acquiring equipment or materials due to supply chain interruptions, including as a result of natural disasters, weather, labor disputes, pandemic outbreak of disease, tariffs, fire or explosions and power outages.
Negative economic and market conditions including tariffs on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.
Negative economic and market conditions including tariffs and inflation on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth.
Any delay or failure by suppliers or by third-party subcontractors in the completion of their portion of the project may result in delays in the overall progress of the project or may cause us to incur additional costs, or both.
Any delay or failure by suppliers or by third-party contractors or subcontractors in the completion of their portion of the project may result in delays in the overall progress of the project or may cause us to incur additional costs, or both.
Increases in the cost of imported raw materials or finished goods as a result of tariffs or trade policies may impact customer spending, and reductions in customer spending could lead to fewer project awards and more competition We cannot predict the outcome of these changing trade policies or other unanticipated political conditions, nor can we predict the timing or strength of any economic recovery or downturn worldwide or its impact on our customers’ markets. 12 TABLE OF CONTENTS New Project and Growth Risks We may be unsuccessful in generating internal growth, which could impact the projects available to the Company.
Increases in the cost of imported raw materials or finished goods as a result of tariffs or trade policies may impact customer spending, indirect inflationary impacts, and reductions in customer spending could lead to fewer project awards and more competition We cannot predict the outcome of these changing trade policies or other unanticipated political conditions, nor can we predict the timing or strength of any economic recovery or downturn worldwide or its impact on our customers’ markets. 12 TABLE OF CONTENTS New Project and Growth Risks We may be unsuccessful in generating internal growth, which could impact the projects available to the Company.
Costs incurred because of warranty claims could adversely affect our business, financial condition, results of operations and cash flows. Our business involves professional judgments regarding the planning, design, development, construction, operations and management of electric power transmission and commercial construction.
Costs incurred because of warranty claims could adversely affect our business, financial condition, results of operations and cash flows. Our business involves professional judgments regarding the planning, design, development, construction, operations and management of electric power transmission, distribution, commercial and industrial construction.
Any future impairments, including impairments of goodwill, intangible assets, long-lived assets or investments, could have a material adverse effect on our business, financial condition, results of operations and cash flows. 21 TABLE OF CONTENTS Pricing and Cost Risks Our actual costs may be greater than expected in performing our fixed-price and unit-price contracts.
Any future impairments, including impairments of goodwill, intangible assets, long-lived assets or investments, could have a material adverse effect on our business, financial condition, results of operations and cash flows. Pricing and Cost Risks Our actual costs may be greater than expected in performing our fixed-price and unit-price contracts.
If our subcontractors fail to perform their contractual obligations as a result of financial or other difficulties, or if our subcontractors fail to meet the expected completion dates or quality standards, we may be required to incur additional costs or provide additional services in order to make up such shortfall and we may suffer damage to our reputation.
If our customers, subcontractors or other third parties, fail to perform their contractual obligations as a result of financial or other difficulties, or if our customers, subcontractors or other third parties, fail to meet the expected completion dates or quality standards, we may be required to incur additional costs or provide additional services in order to make up such shortfall and we may suffer damage to our reputation.
An uninsured or underinsured claim could have an adverse impact on our business, financial condition, results of operations and cash flows. Pandemic outbreaks of disease, such as the COVID-19 pandemic, have in the past had and may in the future have an adverse impact on our business, employees, liquidity, financial condition, results of operations and cash flows.
An uninsured or underinsured claim could have an adverse impact on our business, financial condition, results of operations and cash flows. 17 TABLE OF CONTENTS Pandemic outbreaks of disease, such as the COVID-19 pandemic, have in the past had and may in the future have an adverse impact on our business, employees, liquidity, financial condition, results of operations and cash flows.
Third Party Partner Risks Our dependence on suppliers, subcontractors and equipment manufacturers have in the past and may in the future expose us to the risk of loss in our operations. On certain projects, we rely on suppliers to obtain the necessary materials and subcontractors to perform portions of our services.
Third Party Partner Risks Our dependence on customers, suppliers, subcontractors and equipment manufacturers has in the past and may in the future expose us to the risk of loss in our operations. On certain projects, we rely on suppliers to obtain the necessary materials and subcontractors to perform portions of our services.
In addition, if we are unable to adequately address our partner’s performance issues, the customer may terminate the project, which could result in legal liability to us, reduce our profit on the project or damage our reputation. Regulatory and Environmental Risks Legislative or regulatory actions relating to electricity transmission and clean energy may impact demand for our services.
In addition, if we are unable to adequately address our partner’s performance issues, the customer may terminate the project, which could result in legal liability to us, reduce our profit on the project or damage our reputation. 18 TABLE OF CONTENTS Regulatory and Environmental Risks Legislative or regulatory actions relating to electricity transmission and clean energy may impact demand for our services.
We may be unable to secure these alternatives in a timely manner, on acceptable terms, or at all, which could affect our ability to bid for or work on future projects requiring financial assurances. 22 TABLE OF CONTENTS We have also granted security interests in various assets to collateralize our obligations to our sureties and lenders.
We may be unable to secure these alternatives in a timely manner, on acceptable terms, or at all, which could affect our ability to bid for or work on future projects requiring financial assurances. We have also granted security interests in various assets to collateralize our obligations to our sureties and lenders.
To the extent we cannot engage subcontractors or acquire equipment or materials, we could experience losses in the performance of our operations. Successful completion of our contracts may depend on whether our subcontractors successfully fulfill their contractual obligations.
To the extent we cannot engage subcontractors or acquire equipment or materials, we could experience losses in the performance of our operations. Successful completion of our contracts may depend on whether our customers, subcontractors or other third parties, successfully fulfill their contractual obligations.
These variations, along with other risks inherent in performing fixed-price and unit-price contracts, may cause actual revenue and gross profits for a project to differ from those we originally estimated and could result in reduced profitability or losses on projects due to changes in a variety of factors such as: • failure to properly estimate costs of engineering, material, equipment or labor; • inefficient labor performance; • unanticipated technical problems with the materials or services being supplied by us, which may require us to incur additional costs to remedy the problem; • project modifications that create unanticipated costs; • changes in the costs or availability of equipment, materials, labor or subcontractors; • the failure of our suppliers or subcontractors to perform; • difficulties in our customers obtaining required governmental permits or approvals; • site conditions that differ from those assumed in the original bid; • the availability and skill level of workers in the geographic location of the project; • an increase in the cost of fuel or other resources; • changes in local laws and regulations; • delays caused by local weather conditions, third parties or customers; and • quality issues requiring rework.
These variations, along with other risks inherent in performing fixed-price and unit-price contracts, may cause actual revenue and gross profits for a project to differ from those we originally estimated and could result in reduced profitability or losses on projects due to changes in a variety of factors such as: • failure to properly estimate costs of engineering, material, equipment or labor; • inefficient labor performance; • unanticipated technical problems with the materials or services being supplied by us, which may require us to incur additional costs to remedy the problem; • project modifications that create unanticipated costs; • changes in the costs or availability of equipment, materials, labor or subcontractors; • the failure of our customers, suppliers, subcontractors or other third parties to perform; • difficulties in our customers obtaining required governmental permits or approvals; • site conditions that differ from those assumed in the original bid; • the availability and skill level of workers in the geographic location of the project; • an increase in the cost of fuel or other resources; • changes in, or our interpretations of, local laws and regulations; • delays caused by local weather conditions, third parties or customers; and • quality issues requiring rework. 22 TABLE OF CONTENTS An increase in the cost or availability for items such as materials, parts, commodities, equipment and tooling may also be impacted by trade regulations, tariffs, global relations, wars, taxes, transportation costs and inflation which could adversely affect our business.
Certain risks associated with climate change could include but are not limited to: • changes in insurance coverage, availability of coverage, availability of adequate insurance limits, higher insurance premiums, and larger self-insured retentions/deductibles, • changes in market demand based on climate change as well as legal and regulatory requirements and trends, • operational disruptions and accompanying project inefficiencies and delays that may not be recoverable from clients due to severe weather events and changes in weather patterns, • damage from severe weather events to construction work in progress, • damage to our assets from severe weather events, • reputational risk due to perceptions of the company’s sustainability efforts, and • increased reporting and compliance costs due to new regulatory requirements, customer, shareholder, and stakeholder requests targeting climate change. 20 TABLE OF CONTENTS Additionally, legislative and regulatory responses related to climate change and new interpretations of existing laws through climate change litigation may also negatively impact our operations.
Certain risks associated with climate change could include but are not limited to: • changes in insurance coverage, availability of coverage, availability of adequate insurance limits, higher insurance premiums, and larger self-insured retentions/deductibles, • changes in market demand based on climate change as well as legal and regulatory requirements and trends, • operational disruptions and accompanying project inefficiencies and delays that may not be recoverable from clients due to severe weather events and changes in weather patterns, • damage from severe weather events to construction work in progress, • damage to our assets from severe weather events, • reputational risk due to perceptions of the company’s sustainability efforts, and • increased reporting and compliance costs due to new regulatory requirements, customer, shareholder, and stakeholder requests targeting climate change.
If new regulations are adopted regulating greenhouse gas emissions from mobile sources such as cars and trucks, we could experience a significant increase in environmental compliance costs due to our large fleet.
If new regulations are adopted regulating greenhouse gas emissions from mobile sources such as cars and trucks, we could experience a significant increase in environmental compliance costs due to our large fleet. In addition, if our operations are perceived to result in high greenhouse gas emissions, our reputation could suffer.
In addition, new laws and regulations, stricter enforcement of existing laws and regulations, the discovery of previously unknown contamination or leaks, or the imposition of new permitting or cleanup requirements could require us to incur significant costs or become the basis for new or increased liabilities that could harm our business, financial condition, results of operations and cash flows.
We could also be held liable for significant penalties and damages under certain environmental laws and regulations, which could materially and adversely affect our business, financial condition, results of operations and cash flows. 19 TABLE OF CONTENTS In addition, new laws and regulations, stricter enforcement of existing laws and regulations, the discovery of previously unknown contamination or leaks, or the imposition of new permitting or cleanup requirements could require us to incur significant costs or become the basis for new or increased liabilities that could harm our business, financial condition, results of operations and cash flows.
The continuing and evolving threat of cyber-attacks has also resulted in increased regulatory focus on risk management and prevention. New cyber-related regulations or other requirements could cause us to incur significant costs, which could have an adverse effect on our business, financial position, results of operations and cash flows. Item 1B. Unresolved Staff Comments None.
New cyber-related regulations or other requirements could cause us to incur significant costs, which could have an adverse effect on our business, financial position, results of operations and cash flows. Item 1B. Unresolved Staff Comments None.
We are subject to risks associated with climate change including financial risks and physical risks such as an increase in extreme weather events (such as floods, wildfires or hurricanes), rising sea levels and limitations on water availability and quality. Climate change may create physical and financial risk.
Climate change may create physical and financial risk. Physical risks from climate change could, among other things, include an increase in extreme weather events (such as floods, wildfires or hurricanes), rising sea levels and limitations on water availability and quality.
Any decline in available funding, limitation on access to our cash and liquidity resources, or non-compliance of banking and financial services counterparties with their contractual commitments to us could, among other risk, could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Any decline in available funding, limitation on access to our cash and liquidity resources, or non-compliance of banking and financial services counterparties with their contractual commitments to us could, among other risk, could have a material adverse effect on our business, financial condition, results of operations and cash flows. 23 TABLE OF CONTENTS Employee Risks Work stoppages or other labor issues with our unionized workforce could adversely affect our business, and we may be subject to unionization attempts.
Our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many of which are outside of our control.
From time to time, we establish strategies and expectations related to climate change and other environmental matters. Our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many of which are outside of our control.
During periods with large volumes of storm restoration services work, linemen are frequently recruited across geographic regions to satisfy demand. Many linemen are willing to travel to earn premium wages for such work, which from time to time makes it difficult for us to retain these workers for ongoing projects when storm conditions persist.
Many linemen are willing to travel to earn premium wages for such work, which from time to time makes it difficult for us to retain these workers for ongoing projects when storm conditions persist.
We may incur work stoppages to avoid violating these laws and regulations, or we may risk fines or other sanctions for accidentally or willfully violating these laws and regulations. We are also subject to immigration laws and regulations, for which noncompliance could be material and adversely affect our business, financial condition, results of operations and cash flows.
We are also subject to immigration laws and regulations, for which noncompliance could be material and adversely affect our business, financial condition, results of operations and cash flows.
In addition, an extended period of remote work arrangements could impair our ability to effectively manage our business, and introduce additional operational risks, including but not limited to cybersecurity risks and increased vulnerability to security breaches, cyber-attacks, computer viruses, ransomware, or other similar events and intrusions. 17 TABLE OF CONTENTS We are unable to predict the ultimate impact of any pandemic outbreak of disease, which could adversely affect our business, financial condition, results of operations and cash flows.
In addition, an extended period of remote work arrangements could impair our ability to effectively manage our business, and introduce additional operational risks, including but not limited to cybersecurity risks and increased vulnerability to security breaches, cyber-attacks, computer viruses, ransomware, or other similar events and intrusions.
We are also exposed to increases in energy prices, particularly as they relate to fuel prices for our fleet vehicles. While we believe we can increase our prices to adjust for cost increases, there can be no assurance that future cost increases would be recoverable.
While we believe we can increase our prices to adjust for cost increases, there can be no assurance that future cost increases would be recoverable.
The nature of our business exposes us to potential liability for warranty claims and faulty engineering, which may reduce our profitability. Our customer contracts typically include a warranty for the services that we provide against certain defects in workmanship and material. Additionally, materials used in construction are often provided by the customer or are warranted against defects from the supplier.
Our customer contracts typically include a warranty for the services that we provide against certain defects in workmanship and material. Additionally, materials used in construction are often provided by the customer or are warranted against defects from the supplier. Certain projects have longer warranty periods and include facility performance warranties that may be broader than the warranties we generally provide.
If a material, actual or perceived breach of our security occurs, the public perception of the effectiveness of our security measures could be harmed and we could lose customers. Any such material disruptions or breaches of security would have a material adverse effect on our business, financial position, results of operations and cash flows.
To date, no cybersecurity incident or attack has had a material impact on our business or results of operations. If a material, actual or perceived breach of our security occurs, the public perception of the effectiveness of our security measures could be harmed and we could lose customers.
Actual results could differ from estimated amounts and could result in a reduction or elimination of previously recognized earnings. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results from Operations — Critical Accounting Policies” and in the notes to our Financial Statements, for a discussion on how percentage-of-completion accounting impacts our business.
Management’s Discussion and Analysis of Financial Condition and Results from Operations — Critical Accounting Policies” and in the notes to our Financial Statements, for a discussion on how percentage-of-completion accounting impacts our business. 21 TABLE OF CONTENTS Our financial results are based upon estimates and assumptions that may differ from actual results.
These regulatory factors have resulted in decreased demand for our services in the past, and they may do so in the future, potentially impacting our operations and our ability to grow at historical levels, or at all. 18 TABLE OF CONTENTS In addition, while many states have mandates in place that require specified percentages of electricity to be generated from clean energy sources, states could reduce those mandates or make them optional, which could reduce, delay or eliminate clean energy development in the affected states.
In addition, while many states have mandates in place that require specified percentages of electricity to be generated from clean energy sources, states could reduce those mandates or make them optional, which could reduce, delay or eliminate clean energy development in the affected states.
We also rely on equipment manufacturers to provide us with the equipment required to conduct our operations. Although we are not dependent on any single supplier, subcontractor or equipment manufacturer, any substantial limitation on the availability of required suppliers, subcontractors or equipment manufacturers could negatively impact our operations.
Although we are not dependent on any single customer, supplier, subcontractor or equipment manufacturer, any substantial limitation on the availability of required customers, suppliers, subcontractors or equipment manufacturers could negatively impact our operations. The risk of a lack of available suppliers, subcontractors or equipment manufacturers may be heightened as a result of market, governmental and economic conditions.
Government contracts are also subject to renegotiation of profit and termination by the government prior to the expiration of the term and are susceptible to a government shutdowns or a change in budgetary priorities which could lead to the cancellation of the award, unanticipated costs and delays.
Government contracts are also subject to renegotiation of profit and termination by the government prior to the expiration of the term and are susceptible to a government shutdowns or a change in budgetary priorities which could lead to the cancellation of the award, unanticipated costs and delays. 20 TABLE OF CONTENTS We are subject to risks associated with climate change including financial risks and physical risks such as an increase in extreme weather events (such as floods, wildfires or hurricanes), rising sea levels and limitations on water availability and quality.
We have experienced, expect to continue to be affected through 2024, and may in the future be impacted by, delays and cost volatility of these items due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns.
We have in the past been, and may in the future be impacted by, delays and cost volatility of these items due to supply chain disruptions, inflationary pressures, tariffs and regulatory slowdowns. In addition, our customers’ capital budgets may be impacted by cost increases and reduced customer spending could lead to fewer project awards and more competition.
Compliance with any new laws or regulations regarding the reduction of greenhouse gases could result in significant changes to our operations and a significant increase in our cost of conducting business. From time to time, we establish strategies and expectations related to climate change and other environmental matters.
International treaties or accords could also have an impact on our business to the extent they lead to future governmental regulations. Compliance with any new laws or regulations regarding the reduction of greenhouse gases could result in significant changes to our operations and a significant increase in our cost of conducting business.
In addition, our customers’ capital budgets may be impacted by cost increases and reduced customer spending could lead to fewer project awards and more competition. These costs could be materially impacted by general market conditions and other factors, including U.S. trade relationships with other countries or the imposition of tariffs.
These costs could be materially impacted by general market conditions and other factors, including U.S. trade relationships with other countries or the imposition of tariffs. We are also exposed to increases in energy prices, particularly as they relate to fuel prices for our fleet vehicles.
In addition, current and future laws and regulations governing data privacy and the unauthorized disclosure of confidential information may pose complex compliance challenges and/or result in additional costs. A failure to comply with such laws and regulations could result in penalties or fines, legal liabilities and/or harm our reputation.
Any such material disruptions or breaches of security would have a material adverse effect on our business, financial position, results of operations and cash flows. In addition, current and future laws and regulations governing data privacy and the unauthorized disclosure of confidential information may pose complex compliance challenges and/or result in additional costs.
Additionally, due to recent increases in cyber losses by the insurance industry, cyber insurance coverage may be limited and/or subject to a significant increase in cost. Furthermore, our relationships with, and access provided to, third parties and their vendors may create difficulties in anticipating and implementing adequate preventative measures or mitigating harms after an attack or breach occurs.
Additionally, due to recent increases in cyber losses by the insurance industry, cyber insurance coverage may be limited and/or subject to a significant increase in cost.
Our collective bargaining agreements may require us to participate with other companies in various multi-employer pension plans.
If nonunion employees were to unionize, we could experience higher ongoing labor costs. Multi-employer pension plan obligations related to our unionized workforce could adversely impact our earnings. Our collective bargaining agreements may require us to participate with other companies in various multi-employer pension plans.
From time to time, we have experienced attempts to unionize our nonunion businesses. Such efforts often delay work and present the risk of labor unrest. If nonunion employees were to unionize, we could experience higher ongoing labor costs. Multi-employer pension plan obligations related to our unionized workforce could adversely impact our earnings.
Strikes or work stoppages could adversely impact our relationships with our customers and could cause us to lose business, resulting in decreased revenues. From time to time, we have experienced attempts to unionize our nonunion businesses. Such efforts often delay work and present the risk of labor unrest.
Although most of these agreements prohibit strikes and work stoppages, we cannot be certain that strikes or work stoppages will not occur in the future. Strikes or work stoppages could adversely impact our relationships with our customers and could cause us to lose business, resulting in decreased revenues.
As of December 31, 2024, approximately 87% of our craft labor employees were covered by collective bargaining agreements. Although most of these agreements prohibit strikes and work stoppages, we cannot be certain that strikes or work stoppages will not occur in the future.
Physical risks from climate change could, among other things, include an increase in extreme weather events (such as floods, wildfires or hurricanes), rising sea levels and limitations on water availability and quality. Such extreme weather conditions may limit the availability of resources, increasing the costs of our projects, or may cause projects to be delayed or cancelled.
Such extreme weather conditions may limit the availability of resources, increasing the costs of our projects, or may cause projects to be delayed or cancelled.
During the normal course of business, we have experienced and expect to continue to experience attempts to compromise our information and communications technology and related systems. To date, no cybersecurity incident or attack has had a material impact on our business or results of operations.
Furthermore, our relationships with, and access provided to, third parties and their vendors may create difficulties in anticipating and implementing adequate preventative measures or mitigating harms after an attack or breach occurs. 24 TABLE OF CONTENTS During the normal course of business, we have experienced and expect to continue to experience attempts to compromise our information and communications technology and related systems.
We could also be held liable for significant penalties and damages under certain environmental laws and regulations, which could materially and adversely affect our business, financial condition, results of operations and cash flows.
We are unable to predict the ultimate impact of any pandemic outbreak of disease, which could adversely affect our business, financial condition, results of operations and cash flows.
The cost of additional environmental regulatory requirements could impact the availability of goods and increase our costs. International treaties or accords could also have an impact on our business to the extent they lead to future governmental regulations.
Additionally, legislative and regulatory responses related to climate change and new interpretations of existing laws through climate change litigation may also negatively impact our operations. The cost of additional environmental regulatory requirements could impact the availability of goods and increase our costs.
Removed
Certain projects have longer warranty periods and include facility performance warranties that may be broader than the warranties we generally provide.
Added
Delays in the completion of a project could impact the labor available for other projects, reducing our productivity and causing an increase in our labor costs. Additionally, during periods with large volumes of storm restoration services work, linemen are frequently recruited across geographic regions to satisfy demand.
Removed
The risk of a lack of available suppliers, subcontractors or equipment manufacturers may be heightened as a result of market and economic conditions.
Added
In addition, we currently collect and remit sales and use, value added and other transaction taxes in certain jurisdictions, based on our assessment of the amount of taxes owed by us in such jurisdictions.
Removed
In addition, if our operations are perceived to result in high greenhouse gas emissions, our reputation could suffer. 19 TABLE OF CONTENTS We are also subject to laws and regulations protecting endangered species, artifacts and archaeological sites.
Added
A successful assertion that we are required to pay additional taxes, the imposition of new laws or regulations or the interpretation of existing laws and regulations requiring the payment of additional taxes could materially impact our tax liabilities. The nature of our business exposes us to potential liability for warranty claims and faulty engineering, which may reduce our profitability.
Removed
Our financial results are based upon estimates and assumptions that may differ from actual results.
Added
For some projects we act in a limited capacity or as a subcontractor and rely on our customers to oversee the overall management of a project. We also rely on equipment manufacturers to provide us with the equipment required to conduct our operations.
Removed
An increase in the cost or availability for items such as materials, parts, commodities, equipment and tooling may also be impacted by trade regulations, tariffs, global relations, wars, taxes, transportation costs and inflation which could adversely affect our business.
Added
These regulatory factors have resulted in decreased demand for our services in the past, and they may do so in the future, potentially impacting our operations and our ability to grow at historical levels, or at all.
Removed
Employee Risks Work stoppages or other labor issues with our unionized workforce could adversely affect our business, and we may be subject to unionization attempts. As of December 31, 2023, approximately 84% of our craft labor employees were covered by collective bargaining agreements.
Added
We are also subject to laws and regulations protecting endangered species, artifacts and archaeological sites. We may incur work stoppages to avoid violating these laws and regulations, or we may risk fines or other sanctions for accidentally or willfully violating these laws and regulations.
Added
Actual results could differ from estimated amounts and could result in a reduction or elimination of previously recognized earnings. See “Item 7.
Added
The failure of these systems to operate effectively or problems with transitioning to upgraded or replacement systems could cause delays and reduce the efficiency of our operations, which could have a material adverse effect on our business, financial position, results of operations and cash flows, and significant costs could be incurred to remediate any problem.
Added
A failure to comply with such laws and regulations could result in penalties or fines, legal liabilities and/or harm our reputation. The continuing and evolving threat of cyber-attacks has also resulted in increased regulatory focus on risk management and prevention.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−0 removed4 unchanged
Biggest changeTo date, no cybersecurity incident or attack, or any risk from cybersecurity threats, has materially affected or has been determined to be reasonably likely to materially affect the Company or our business strategy, results of operations, or financial condition. See also “Item 1A. Risk Factors — Cybersecurity and Information Technology Risks.” 24 TABLE OF CONTENTS
Biggest changeTo date, no cybersecurity incident or attack, or any risk from cybersecurity threats, has materially affected or has been determined to be reasonably likely to materially affect the Company or our business strategy, results of operations, or financial condition. See also “Item 1A. Risk Factors — Cybersecurity and Information Technology Risks.”

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed2 unchanged
Biggest changeAs of December 31, 2023, we owned 19 operating facilities and leased many other properties in various locations throughout our service territories. Most of our properties are used as operational offices or for fleet operations. We believe that our facilities are adequate for our current operating needs.
Biggest changeAs of December 31, 2024, we owned 19 operating facilities and leased many other properties in various locations throughout our service territories. Most of our properties are used as operational offices or for fleet operations. We believe that our facilities are adequate for our current operating needs.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+1 added−3 removed4 unchanged
Biggest changePeriod Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) October 1, 2023 - October 31, 2023 — $ — — $ 75,000,000 November 1, 2023 - November 30, 2023 25,042 $ 114.55 25,042 $ 72,487,423 December 1, 2023 - December 31, 2023 — $ — — $ 72,487,423 Total 25,042 $ 114.55 25,042 (1) On November 1, 2023, the Company announced that its Board of Directors had authorized a new $75.0 million share repurchase program (the "Repurchase Program"), which became effective on November 9, 2023.
Biggest changePurchases of Common Stock We did not purchase any shares of common stock in October, November or December of 2024. On May 6, 2024, the Company announced that its Board of Directors had authorized a new $75.0 million share repurchase program (the "Repurchase Program"), which became effective on May 9, 2024.
The following graph compares, for the period from December 31, 2018 to December 31, 2023, the cumulative total shareholder return on our common stock with the cumulative total return on the Standard & Poor’s 500 Index (the “S&P 500 Index”), the Russell 2000 Index, and a peer group index selected by our management that includes eleven publicly traded companies within our industry (the “Peer Group”).
The following graph compares, for the period from December 31, 2019 to December 31, 2024, the cumulative total shareholder return on our common stock with the cumulative total return on the Standard & Poor’s 500 Index (the “S&P 500 Index”), the Russell 2000 Index, and a peer group index selected by our management that includes eleven publicly traded companies within our industry (the “Peer Group”).
Granite Construction Incorporated Primoris Services Corporation* Comfort Systems USA, Inc. IES Holdings, Inc. Quanta Services, Inc.* Dycom Industries, Inc. MasTec, Inc.* Tetra Tech, Inc. EMCOR Group* Matrix Service Company ___________________________ * Considered our core group of peers with a more significant portion of operations being similar to ours than the overall group. Graph presents entire Peer Group.
Granite Construction Incorporated Primoris Services Corporation* Comfort Systems USA, Inc. IES Holdings, Inc. Quanta Services, Inc.* Dycom Industries, Inc. MasTec, Inc.* Tetra Tech, Inc. EMCOR Group* Matrix Service Company ___________________________ * Considered our core group of peers with a more significant portion of operations being similar to ours than the overall group.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock, par value $0.01, is listed on The Nasdaq Global Market under the symbol “MYRG.” Holders of Record As of February 23, 2024, we had 6 holders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock, par value $0.01, is listed on The Nasdaq Global Market under the symbol “MYRG.” Holders of Record As of February 21, 2025, we had 6 holders of record of our common stock.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among MYR Group, Inc., the S&P 500 Index, the Russell 2000 Index, and a Peer Group *$100 invested on 12/31/2018 in stock or including reinvestment of dividends. Fiscal year ending December 31. Copyright© 2024 Standard & Poor's, a division of S&P Global. All rights reserved Copyright© 2024 Russell Investment Group.
Graph presents entire Peer Group. 26 TABLE OF CONTENTS COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among MYR Group, Inc., the S&P 500 Index, the Russell 2000 Index, and a Peer Group *$100 invested on 12/31/2019 in stock or including reinvestment of dividends. Fiscal year ending December 31. Copyright© 2025 Standard & Poor's, a division of S&P Global.
The stock price performance reflected on the following graph is not necessarily indicative of future stock price performance. 26 TABLE OF CONTENTS The companies in the Peer Group were selected because they comprise a broad group of publicly traded companies, each of which has some operations similar to ours.
The companies in the Peer Group were selected because they comprise a broad group of publicly traded companies, each of which has some operations similar to ours.
The comparison assumes that $100 was invested on December 31, 2018 and further assumes any dividends were reinvested quarterly.
The comparison assumes that $100 was invested on December 31, 2019 and further assumes any dividends were reinvested quarterly. The stock price performance reflected on the following graph is not necessarily indicative of future stock price performance.
The Company’s prior $75.0 million repurchase program that was announced on May 2, 2023 and commenced on May 9, 2023 expired on November 8, 2023. The Company repurchased 3,098 shares of its common stock under this prior repurchase program.
The Company exhausted substantially all of the funds available to repurchase shares of the Company’s common stock under the Repurchase Program. The Repurchase Program expired on November 8, 2024.
Removed
Purchases of Common Stock The following table includes all of the Company’s repurchases of common stock for the periods shown. Repurchased shares are retired and returned to authorized but unissued common stock.
Added
All rights reserved Copyright© 2025 Russell Investment Group. All right reserved. 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 MYR Group Inc. 100.00 184.41 339.21 282.51 443.79 456.49 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 Russell 2000 100.00 119.96 137.74 109.59 128.14 142.93 Peer Group 100.00 130.49 187.69 197.73 273.54 453.09 Item 6. [Reserved] 27 TABLE OF CONTENTS
Removed
The Repurchase Program will expire on May 8, 2024, or when the authorized funds are exhausted, whichever is earlier. As of December 31, 2023, the Company had repurchased 21,944 shares of its common stock under the Repurchase Program and had $72.5 million of remaining availability to repurchase shares of the Company’s common stock under the Repurchase Program.
Removed
All right reserved. 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 MYR Group Inc. 100.00 115.69 213.35 392.44 326.84 513.42 S&P 500 100.00 131.49 155.68 200.37 164.08 207.21 Russell 2000 100.00 125.52 150.58 172.90 137.56 160.85 Peer Group 100.00 133.33 173.99 250.26 263.64 364.72 Item 6. [Reserved] 27 TABLE OF CONTENTS

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

93 edited+11 added−19 removed135 unchanged
Biggest changeSelling, General and Administrative Expenses Selling, general and administrative expenses (“SG&A”) consist primarily of compensation, related benefits and employee costs for management and administrative personnel, office rent and utilities, stock compensation, communications, professional fees, depreciation, IT expenses, marketing costs and bad debt expense. 33 TABLE OF CONTENTS Consolidated Results of Operations The following table sets forth selected statements of operations data and such data as a percentage of revenues for the years indicated: Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 For the year ended December 31, (dollars in thousands) 2023 2022 Contract revenues $ 3,643,905 100.0 % $ 3,008,542 100.0 % Contract costs 3,279,508 90.0 2,664,580 88.6 Gross profit 364,397 10.0 343,962 11.4 Selling, general and administrative expenses 234,611 6.5 222,424 7.4 Amortization of intangible assets 4,907 0.1 9,009 0.3 Gain on sale of property and equipment (4,214) (0.1) (2,378) (0.1) Income from operations 129,093 3.5 114,907 3.8 Other income (expense): Interest income 888 — 187 — Interest expense (4,939) (0.1) (3,563) (0.1) Other income (expense), net (38) — 2,673 0.1 Income before provision for income taxes 125,004 3.4 114,204 3.8 Income tax expense 34,014 0.9 30,823 1.0 Net income 90,990 2.5 83,381 2.8 Revenues.
Biggest changeConsolidated Results of Operations The following table sets forth selected statements of operations data and such data as a percentage of revenues for the years indicated: Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 For the year ended December 31, (dollars in thousands) 2024 2023 Contract revenues $ 3,362,290 100.0 % $ 3,643,905 100.0 % Contract costs 3,071,971 91.4 3,279,508 90.0 Gross profit 290,319 8.6 364,397 10.0 Selling, general and administrative expenses 238,222 7.1 234,611 6.5 Amortization of intangible assets 4,869 0.1 4,907 0.1 Gain on sale of property and equipment (6,854) (0.2) (4,214) (0.1) Income from operations 54,082 1.6 129,093 3.5 Other income (expense): Interest income 415 — 888 — Interest expense (6,525) (0.2) (4,939) (0.1) Other income (expense), net (1,479) — (38) — Income before provision for income taxes 46,493 1.4 125,004 3.4 Income tax expense 16,230 0.5 34,014 0.9 Net income 30,263 0.9 90,990 2.5 Revenues decreased $281.6 million, or 7.7%, to $3.36 billion for the year ended December 31, 2024 from $3.64 billion for the year ended December 31, 2023.
We have provided electrical contracting services for commercial and industrial construction since 1912. Our C&I segment provides services in the United States and in western Canada. Our C&I customers include facility owners and general contractors. We strive to maintain our status as a preferred provider to our T&D and C&I customers.
We have provided electrical contracting services for commercial and industrial construction since 1912. Our C&I segment provides services in the United States and in western Canada. Our C&I customers include general contractors and facility owners. We strive to maintain our status as a preferred provider to our T&D and C&I customers.
Revenue associated with contracts with customers is recognized over time as our performance creates or enhances customer-controlled assets or creates or enhances an asset with no alternative use, for which we have an enforceable right to receive compensation as defined under the contract.
Revenue associated with contracts with customers is recognized over time as our performance creates or enhances customer-controlled assets or creates or enhances an asset with no alternative use, for which we have an enforceable right to receive compensation as defined under the contract.
As the cost-to-cost method is driven by incurred cost, we calculate the percentage of completion by dividing costs incurred to date by the total estimated cost. The percentage of completion is then multiplied by estimated revenues to determine inception-to-date revenue. Revenue recognized for the period is the current inception-to-date recognized revenue less the prior period inception-to-date recognized revenue.
As the cost-to-cost method is driven by incurred cost, we calculate the percentage of completion by dividing costs incurred to date by the total estimated cost. The percentage of completion is then multiplied by estimated revenues to determine inception-to-date revenue. Revenue recognized for the period is the current inception-to-date recognized revenue less the prior period inception-to-date recognized revenue.
As of December 31, 2023, we had $34.4 million in letters of credit outstanding under our Credit Agreement, including $27.1 million related to the Company's payment obligations under its insurance programs and approximately $7.3 million related to contract performance obligations.
As of December 31, 2023, we had $34.4 million in letters of credit outstanding under our Credit Agreement including $27.1 million related to the Company's payment obligations under its insurance programs and $7.3 million related to contract performance obligations.
In our C&I segment, we generally provide our electric construction and maintenance services as a subcontractor to general contractors in the C&I industry as well as directly to facility owners. We have a diverse customer base with many long-standing relationships. We concentrate our efforts on projects where our technical and project management expertise are critical to successful and timely execution.
In our C&I segment, we generally provide our electric construction and maintenance services as a subcontractor to general contractors in the C&I industry as well as directly to facility owners. We have a diverse customer base with many long-standing relationships. We concentrate our efforts on projects where our technical and project management expertise is critical to successful and timely execution.
The timing of multi-year transmission project awards and substantial construction activity is difficult to predict due to regulatory requirements and the permitting needed to commence construction. Significant construction on any large, multi-year projects awarded in 2024 will not likely have a large impact on our 2024 results.
The timing of multi-year transmission project awards and substantial construction activity is difficult to predict due to regulatory requirements and the permitting needed to commence construction. Significant construction on any large, multi-year projects awarded in 2025 will not likely have a large impact on our 2025 results.
As is common practice in the industry, we classify all accounts receivable as current assets. The allowance for doubtful accounts associated with account receivables was $2.0 million as of December 31, 2023 and $2.1 million as of December 31, 2022.
As is common practice in the industry, we classify all accounts receivable as current assets. The allowance for doubtful accounts associated with account receivables was $1.1 million as of December 31, 2024 and $2.0 million as of December 31, 2023.
We believe that regulatory reform, state clean energy portfolio standards, the aging of the electric grid, and potential overall improvement of the economy will positively impact the level of spending by our customers in all of the markets we serve. Although competition remains strong, we see these trends as positive factors for us in the future.
We believe that regulatory reform, increased electricity demand, state clean energy portfolio standards, the aging of the electric grid, and potential overall improvement of the economy will positively impact the level of spending by our customers in all of the markets we serve. Although competition remains strong, we see these trends as positive factors for us in the future.
In 2021, we performed a quantitative assessment on our goodwill and intangible assets with indefinite lives; this assessment did not indicate that our goodwill or indefinite lived intangible assets were impaired. Accounts Receivable and Allowance for Doubtful Accounts.
In 2024, we performed a quantitative assessment on our goodwill and intangible assets with indefinite lives; this assessment did not indicate that our goodwill or indefinite lived intangible assets were impaired. Accounts Receivable and Allowance for Doubtful Accounts.
Changes in backlog from period to period are primarily the result of fluctuations in the timing of awards, type of awards and revenue recognition of contracts. Backlog should not be relied upon as a stand-alone indicator of future events. 31 TABLE OF CONTENTS Understanding Gross Margins Our gross margin is gross profit expressed as a percentage of revenues.
Changes in backlog from period to period are primarily the result of fluctuations in the timing of awards, type of awards and revenue recognition of contracts. Backlog should not be relied upon as a stand-alone indicator of future events. Understanding Gross Margins Our gross margin is gross profit expressed as a percentage of revenues.
Non-compliance with these financial covenants under the Credit Agreement — our interest coverage ratio which is defined in the Credit Agreement as Consolidated EBITDA (as defined in the Credit Agreement) divided by interest expense (as defined in the Credit Agreement) and our net leverage ratio, which is defined in the Credit Agreement as Total Net Indebtedness (as defined in the Credit Agreement), divided by Consolidated EBITDA (as defined in the Credit Agreement) — could result in our lenders requiring us to immediately repay all amounts borrowed.
Non-compliance with these financial covenants under the Credit Agreement — our interest coverage ratio which is defined in the Credit Agreement as Consolidated EBITDA (as defined in the Credit Agreement) divided by interest expense (as defined in the Credit Agreement) and our net leverage ratio, which is defined in the Credit Agreement as Total Net Indebtedness (as defined in the Credit Agreement), divided by Consolidated EBITDA (as defined in the Credit Agreement) — could result in our lenders requiring us to immediately repay all amounts borrowed on our revolving credit facility.
Presentation of Information The discussion that follows includes a comparison of our results of operations and liquidity and capital resources for the fiscal years ended December 31, 2023 and 2022.
Presentation of Information The discussion that follows includes a comparison of our results of operations and liquidity and capital resources for the fiscal years ended December 31, 2024 and 2023.
In addition, from time to time, certain customers or our sureties require us to post letters of credit to ensure payment to our subcontractors and vendors and guarantee performance under our contracts. Such letters of credit are generally issued by a bank or similar financial institution typically pursuant to our senior credit facility.
In addition, from time to time, certain customers or our sureties require us to post letters of credit to ensure payment to our subcontractors and vendors and guarantee performance under our contracts. Such letters of credit are generally issued by a bank typically pursuant to our senior credit facility.
As of December 31, 2023 and 2022, we had two outstanding Equipment Notes collateralized by equipment and vehicles owned by us. As of December 31, 2023 and 2022, we also had one other equipment note outstanding collateralized by a vehicle owned by us.
As of December 31, 2023, we had two outstanding Equipment Notes collateralized by equipment and vehicles owned by us. As of December 31, 2024 and 2023, we also had one other equipment note outstanding collateralized by a vehicle owned by us.
Consequently, we are subject to potential credit risk related to changes in business and economic factors. However, we generally have certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosures or negotiated settlements, we may take title to the underlying assets in lieu of cash in settlement of receivables.
Consequently, we are subject to potential credit risk related to changes in business and economic factors throughout the United States and Canada. However, we generally have certain statutory lien rights with respect to services provided. Under certain circumstances such as foreclosures or negotiated settlements, we may take title to the underlying assets in lieu of cash in settlement of receivables.
Additionally, from time to time we are required to post letters of credit to guarantee the obligations of our wholly-owned subsidiaries, which reduces the borrowing availability under our credit facility. 40 TABLE OF CONTENTS Concentration of Credit Risk We grant trade credit under contractual payment terms, generally without collateral, to our customers, which include high credit quality electric utilities, governmental entities, general contractors and builders, owners and managers of commercial and industrial properties.
Additionally, from time to time we are required to post letters of credit to guarantee the obligations of our wholly-owned subsidiaries, which reduces the borrowing availability under our credit facility. 40 TABLE OF CONTENTS Concentration of Credit Risk We grant trade credit under contractual payment terms, generally without collateral, to our customers, which include high credit quality electric utilities, governmental entities, general contractors and builders, owners and managers of commercial and industrial properties located in the United States and Canada.
The decrease in gross margin was primarily impacted by significant changes in our estimated gross profit on certain projects resulting in a net gross margin decrease of 1.7% for the year ended December 31, 2023, compared to a net decrease of 0.4% for the year ended December 31, 2022.
The decrease in gross margin was primarily impacted by significant changes in our estimated gross profit on certain projects resulting in a net gross margin decrease of 4.4% for the year ended December 31, 2024, compared to a net decrease of 1.7% for the year ended December 31, 2023.
Operating income margin was impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin decrease of 1.5% for the year ended December 31, 2023, compared to a net decrease of 0.1% for the year ended December 31, 2022.
Operating income margin was impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin decrease of 5.5% for the year ended December 31, 2024, compared to a net decrease of 1.5% for the year ended December 31, 2023.
In addition, we believe that we are better capitalized than some of our competitors, which provides us with valuable flexibility to take on additional and more complex projects. We had revenues for the year ended December 31, 2023 of $3.64 billion compared to $3.01 billion for the year ended December 31, 2022.
In addition, we believe that we are better capitalized than some of our competitors, which provides us with valuable flexibility to take on additional and more complex projects. We had revenues for the year ended December 31, 2024 of $3.36 billion compared to $3.64 billion for the year ended December 31, 2023.
Revenues from transmission projects represented 66.1%, 62.1%, and 62.0% of T&D segment revenue for the years ended December 31, 2023, 2022 and 2021, respectively. 28 TABLE OF CONTENTS Our T&D segment also provides restoration services in response to hurricanes, ice storms or other storm related events, which accounted for less than 5% of our annual revenues in 2023, 2022 and 2021.
Revenues from transmission projects represented 60.6%, 66.1%, and 62.1% of T&D segment revenue for the years ended December 31, 2024, 2023 and 2022, respectively. 28 TABLE OF CONTENTS Our T&D segment also provides restoration services in response to hurricanes, ice storms or other storm related events, which accounted for less than 5% of our annual revenues in 2024, 2023 and 2022.
For a discussion of changes from the fiscal year ended December 31, 2022 to the fiscal year ended December 31, 2021, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022 (filed February 22, 2023).
For a discussion of changes from the fiscal year ended December 31, 2023 to the fiscal year ended December 31, 2022, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023 (filed February 28, 2024).
However, to the extent payment is required for any such claims, the amount paid could be material and could adversely affect cash flows. 39 TABLE OF CONTENTS Equipment Notes We have entered into multiple Master Loan Agreements with multiple banks.
However, to the extent payment is required for any such claims, the amount paid could be material and could adversely affect cash flows. 39 TABLE OF CONTENTS Equipment Notes We have entered into multiple Master Loan and Security Agreements (the "Master Loan Agreements") with multiple finance companies.
Additionally, we are required to allocate more working capital to projects when we are required to provide materials. Insurance. Gross margins could be impacted by fluctuations in insurance accruals related to our deductibles and loss history in the period in which such adjustments are made.
Additionally, we are required to allocate more working capital to projects when we are required to provide materials. 32 TABLE OF CONTENTS Insurance. Gross margins could be impacted by fluctuations in insurance accruals related to our deductibles and loss history in the period in which such adjustments are made.
Measured by revenues in our T&D segment, we provided 52.7%, 47.8% and 43.0% of our T&D services under fixed-price contracts during the years ended December 31, 2023, 2022 and 2021, respectively. Commercial and Industrial segment .
Measured by revenues in our T&D segment, we provided 43.9%, 52.7% and 47.8% of our T&D services under fixed-price contracts during the years ended December 31, 2024, 2023 and 2022, respectively. Commercial and Industrial segment .
The foregoing factors as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit between periods. During the year ended December 31, 2023, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.7%.
The foregoing factors as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit between periods. During the year ended December 31, 2024, changes in estimates pertaining to certain projects decreased consolidated gross margin by 4.4%.
Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. The outstanding balance of operating lease obligations was $35.0 million as of December 31, 2023.
Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. The outstanding balance of operating lease obligations was $42.6 million as of December 31, 2024.
We believe the investment in specialized equipment helps to reduce our costs, improve our margins and provide us with valuable flexibility to take on additional and complex projects. 32 TABLE OF CONTENTS Material and Subcontract Costs.
We believe the investment in specialized equipment helps to reduce our costs, improve our margins and provide us with valuable flexibility to take on additional and complex projects. Material and Subcontract Costs.
Operating income margin was impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin decrease of 2.0% for the year ended December 31, 2023, compared to a net decrease of 0.7% for the year ended December 31, 2022.
Operating income margin was also impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin decrease of 2.9% for the year ended December 31, 2024, compared to a net decrease of 2.0% for the year ended December 31, 2023.
Non-GAAP Measures EBITDA EBITDA is a non-GAAP measure used by management that we define as net income attributable to MYR Group Inc. plus net income from noncontrolling interests, interest expense net of interest income, income tax expense and depreciation and amortization, as shown in the following table.
Non-GAAP Measures EBITDA EBITDA is a non-GAAP measure used by management that we define as net income plus net income from noncontrolling interests, interest expense net of interest income, income tax expense and depreciation and amortization, as shown in the following table.
The Company’s leases have remaining terms ranging from one to ten years, some of which may include options to extend the leases for up to six years, and some of which may include options to terminate the leases within one year.
The Company’s leases have remaining terms ranging from less than one to nine years, some of which may include options to extend the leases for up to ten years, and some of which may include options to terminate the leases within one year.
We believe there is an ongoing need for utilities to sustain investment in their transmission systems to improve reliability, reduce congestion and connect to new clean energy sources. Consequently, we believe we will continue to see significant bidding activity on large transmission projects going forward.
We believe there is an ongoing need for utilities to sustain investment in their transmission systems to improve reliability, reduce congestion, connect to new clean energy sources and support future load growth. Consequently, we believe we will continue to see continued bidding activity on large transmission projects going forward.
During the year ended December 31, 2023, our operating activities provided cash of $71.0 million, compared to $167.5 million for the year ended December 31, 2022. Cash flow from operations is primarily influenced by operating margins, timing of contract performance and the type of services we provide to our customers.
During the year ended December 31, 2024, our operating activities provided cash of $87.1 million, compared to $71.0 million for the year ended December 31, 2023. Cash flow from operations is primarily influenced by operating margins, timing of contract performance and the type of services we provide to our customers.
As of December 31, 2023 and 2022, we recognized revenues of $76.5 million and $19.6 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects.
As of December 31, 2024 and 2023, we recognized revenues of $46.0 million and $76.5 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects.
Measured by revenues in our C&I segment, we provided 82.0%, 83.3% and 80.5% of our services under fixed-price contracts for the years ended December 31, 2023, 2022 and 2021, respectively. Overview-Revenue and Gross Margins Revenue Recognition.
Measured by revenues in our C&I segment, we provided 81.2%, 82.0% and 83.3% of our services under fixed-price contracts for the years ended December 31, 2024, 2023 and 2022, respectively. Overview-Revenue and Gross Margins Revenue Recognition.
EBITDA does not purport to be an alternative to net income attributable to MYR Group Inc. as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity.
EBITDA does not purport to be an alternative to net income as a measure of operating performance or to net cash flows provided by operating activities as a measure of liquidity.
As of December 31, 2023, we had $2.3 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $2.0 million and $0.3 million, respectively. As of December 31, 2022, we had $3.4 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $1.1 million and $2.3 million, respectively.
As of December 31, 2024, we had $3.0 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $1.1 million and $1.9 million, respectively. As of December 31, 2023, we had $2.3 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $2.0 million and $0.3 million, respectively.
For the year ended December 31, 2023, net income was $91.0 million compared to $83.4 million for the year ended December 31, 2022. Overview-Segments Transmission and Distribution segment . Our T&D segment provides comprehensive solutions to providers in the electric utility industry.
For the year ended December 31, 2024, net income was $30.3 million compared to $91.0 million for the year ended December 31, 2023. Overview-Segments Transmission and Distribution segment . Our T&D segment provides comprehensive solutions to providers in the electric utility industry.
In contracts in which a significant reversal may occur, we use constraint in recognizing revenue on variable consideration. Although we often enter into contracts that contain liquidated damage clauses, we rarely incur them, and as such, we do not include amounts associated with liquidated damage clauses until it is probable that liquidated damages will occur.
In contracts in which a significant reversal may occur, we use constraint in recognizing revenue on variable consideration. We often enter into contracts that contain liquidated damage clauses. We do not include amounts associated with liquidated damage clauses until it is probable that liquidated damages will occur.
We continue to invest in developing key management and craft personnel in both our T&D and C&I markets and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity. In 2023 and 2022, we invested in capital expenditures of approximately $84.7 million and $77.1 million, respectively.
We continue to invest in developing key management and craft personnel in both our T&D and C&I segments and in procuring the specific specialty equipment and tooling needed to win and execute projects of all sizes and complexity. In 2024 and 2023, we invested in capital expenditures of approximately $75.9 million and $84.7 million, respectively.
Purchase Commitments for Construction Equipment As of December 31, 2023, we had approximately $32.5 million in outstanding purchase obligations for certain construction equipment to be paid with cash outlays scheduled to occur in 2024.
Purchase Commitments for Construction Equipment As of December 31, 2024, we had approximately $4.9 million in outstanding purchase obligations for certain construction equipment to be paid with cash outlays scheduled to occur in 2025.
The unfavorable change in operating assets and liabilities was primarily due to the net unfavorable year-over-year changes in various working capital accounts that relate primarily to construction activities (accounts receivable, contract assets, accounts payable and contract liabilities) of $133.0 million, partially offset by the favorable change of $43.6 million in other liabilities.
The favorable change in operating assets and liabilities was primarily due to the net favorable year-over-year changes in various working capital accounts that relate primarily to construction activities (accounts receivable, contract assets, accounts payable and contract liabilities) of $119.3 million, partially offset by the unfavorable change of $50.9 million in other liabilities.
During the year ended December 31, 2022, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%. During the year ended December 31, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.4%.
During the year ended December 31, 2023, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.7%. During the year ended December 31, 2022, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%.
The $9.3 million of cash used in financing activities in the year ended December 31, 2022 consisted primarily of $37.0 million of shares repurchases under our share repurchase program, $6.8 million of shares repurchased to satisfy tax obligations under our stock compensation programs, $1.6 million of repayments of finance lease obligations and $1.0 million of net repayments under our master equipment loan agreements.
The $18.4 million of cash used in financing activities in the year ended December 31, 2023 consisted primarily of $7.9 million of shares repurchased to satisfy tax obligations under our stock compensation programs, $4.6 million of net repayments under our master equipment loan agreements, $2.9 million of shares repurchases under our share repurchase program and $1.1 million of repayments of finance lease obligations.
For the year ended December 31, 2023, our T&D revenues were $2.09 billion, or 57.3%, of our revenue, compared to $1.75 billion, or 58.0%, of our revenue for the year ended December 31, 2022 and $1.30 billion, or 52.1%, of our revenue for the year ended December 31, 2021.
For the year ended December 31, 2024, our T&D revenues were $1.88 billion, or 55.9%, of our revenue, compared to $2.09 billion, or 57.3%, of our revenue for the year ended December 31, 2023 and $1.75 billion, or 58.0%, of our revenue for the year ended December 31, 2022.
We believe our $442.4 million borrowing availability under our revolving line of credit at December 31, 2023, future cash flow from operations and our ability to utilize short-term and long-term leases will provide sufficient liquidity for our short-term and long-term needs.
We believe our $354.8 million borrowing availability under our revolving line of credit as of December 31, 2024, future cash flow from operations and our ability to utilize short-term and long-term leases will provide sufficient liquidity for our short-term and long-term needs.
During the years ended December 31, 2023 and 2022, we used net cash of $79.1 million and $185.7 million, respectively, in investing activities. The $79.1 million of cash used in investing activities in the year ended December 31, 2023 consisted of $84.7 million for capital expenditures, partially offset by $5.6 million of proceeds from the sale of equipment.
The $79.1 million of cash used in investing activities in the year ended December 31, 2023 consisted of $84.7 million for capital expenditures, partially offset by $5.6 million of proceeds from the sale of equipment. During the years ended December 31, 2024 and 2023, we used cash of $40.0 million, and $18.4 million, respectively in financing activities.
Income tax expense was $34.0 million for the year ended December 31, 2023, with an effective tax rate of 27.2%, compared to $30.8 million for the year ended December 31, 2022, with an effective tax rate of 27.0%.
Income tax expense was $16.2 million for the year ended December 31, 2024, with an effective tax rate of 34.9%, compared to $34.0 million for the year ended December 31, 2023, with an effective tax rate of 27.2%.
These decreases were partially offset by positive significant estimated gross profit changes totaling 0.6% of revenues mostly related to favorable change orders and better-than-anticipated productivity.
These decreases were partially offset by positive significant estimated gross profit changes totaling 0.2% of revenues mostly related to better-than-anticipated productivity.
The $18.4 million of cash used in financing activities in the year ended December 31, 2023 consisted primarily of $7.9 million of shares repurchased to satisfy tax obligations under our stock compensation programs, $4.6 million of payments under our equipment notes, $2.9 million of share repurchases under our share repurchase program, $2.1 million of debt refinancing costs and $1.1 million of repayments of finance lease obligations, partially offset by $0.3 million of net borrowings under our revolving line of credit.
The $40.0 million of cash used in financing activities in the year ended December 31, 2024 consisted primarily of $75.0 million of share repurchases under our share repurchase program, $7.1 million of payments under our equipment notes, $5.9 million of shares repurchased to satisfy tax obligations under our stock compensation programs and $1.2 million of repayments of finance lease obligations, partially offset by $45.2 million of net borrowings under our revolving line of credit.
As of December 31, 2023, an aggregate of approximately $2.44 billion in original face amount of bonds issued by our sureties were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $726.1 million as of December 31, 2023.
As of December 31, 2024, an aggregate of approximately $2.27 billion in original face amount of bonds issued by our sureties were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $662.6 million as of December 31, 2024.
For the year ended December 31, 2023, our C&I revenues were $1.55 billion, or 42.7%, of our revenue, compared to $1.26 billion, or 42.0%, of our revenue for the year ended December 31, 2022 and $1.20 billion, or 47.9%, of our revenue for the year ended December 31, 2021.
For the year ended December 31, 2024, our C&I revenues were $1.48 billion, or 44.1%, of our revenue, compared to $1.55 billion, or 42.7%, of our revenue for the year ended December 31, 2023 and $1.26 billion, or 42.0%, of our revenue for the year ended December 31, 2022.
Operating income, as a percentage of revenues, for our C&I segment decreased to 3.0% for the year ended December 31, 2023 from 3.4% for the year ended December 31, 2022.
Operating income, as a percentage of revenues, for our C&I segment increased to 3.2% for the year ended December 31, 2024 from 3.0% for the year ended December 31, 2023.
Letters of credit issued under the Facility are subject to a letter of credit fee of 1.25% to 2.00% for non-performance letters of credit or 0.625% to 1.00% for performance letters of credit, based on the Company’s Net Leverage Ratio.
The applicable margin is determined based on the Company’s Net Leverage Ratio (as defined in the Credit Agreement). Letters of credit issued under the Facility are subject to a letter of credit fee of 1.25% to 2.00% for non-performance letters of credit or 0.625% to 1.00% for performance letters of credit, based on the Company’s Net Leverage Ratio.
The following table provides the Company’s calculation of working capital: As of December 31, (in thousands) 2023 2022 2021 Total current assets $ 1,026,244 $ 890,291 $ 748,390 Less: total current liabilities (747,202) (666,960) (498,599) Working capital $ 279,042 $ 223,331 $ 249,791 37 TABLE OF CONTENTS Liquidity, Capital Resources and Material Cash Requirements As of December 31, 2023 and 2022, we had working capital of $279.0 million and $223.3 million, respectively.
The following table provides the Company’s calculation of working capital: As of December 31, (in thousands) 2024 2023 2022 Total current assets $ 1,014,662 $ 1,026,244 $ 890,291 Less: total current liabilities (748,900) (747,202) (666,960) Working capital $ 265,762 $ 279,042 $ 223,331 37 TABLE OF CONTENTS Liquidity, Capital Resources and Material Cash Requirements As of December 31, 2024 and 2023, we had working capital of $265.8 million and $279.0 million, respectively.
The outstanding balance of all Equipment Notes was $23.0 million as of December 31, 2023, of which $7.1 million was due in the next twelve months. The outstanding balance of these Equipment Notes was $27.6 million as of December 31, 2022, of which $5.1 million was due in the next twelve months.
The outstanding balance of all equipment notes was $16.0 million as of December 31, 2024, of which $4.4 million was due in the next twelve months. The outstanding balance of these equipment notes was $23.0 million as of December 31, 2023, of which $7.1 million was due in the next twelve months.
As of December 31, 2023, we had outstanding short-term and long-term operating lease obligations of approximately $9.2 million and $25.8 million, respectively. The outstanding balance of operating lease obligations was $30.5 million as of December 31, 2022. As of December 31, 2022, we had outstanding short-term and long-term operating lease obligations of approximately $9.7 million and $20.8 million, respectively.
As of December 31, 2024, we had outstanding short-term and long-term operating lease obligations of approximately $12.1 million and $30.5 million, respectively. The outstanding balance of operating lease obligations was $35.0 million as of December 31, 2023. As of December 31, 2023, we had outstanding short-term and long-term operating lease obligations of approximately $9.2 million and $25.8 million, respectively.
The following table provides a reconciliation of net cash flows provided by operating activities to EBITDA: For the year ended December 31, (in thousands) 2023 2022 2021 Net cash flows provided by operating activities $ 71,016 $ 167,484 $ 137,228 Add/(subtract) Changes in operating assets and liabilities 85,426 (8,522) 6,554 Adjustments to reconcile net income to net cash flows provided by operating activities (65,452) (75,581) (58,776) Depreciation and amortization 59,138 58,170 46,205 Income tax expense 34,014 30,823 31,300 Interest expense, net 4,051 3,376 1,729 EBITDA $ 188,193 $ 175,750 $ 164,240 Working Capital Working capital is a non-GAAP measure.
The following table provides a reconciliation of net cash flows provided by operating activities to EBITDA: For the year ended December 31, (in thousands) 2024 2023 2022 Net cash flows provided by operating activities $ 87,115 $ 71,016 $ 167,484 Add/(subtract) Changes in operating assets and liabilities 11,074 85,426 (8,522) Adjustments to reconcile net income to net cash flows provided by operating activities (67,926) (65,452) (75,581) Depreciation and amortization 65,189 59,138 58,170 Income tax expense 16,230 34,014 30,823 Interest expense, net 6,110 4,051 3,376 EBITDA $ 117,792 $ 188,193 $ 175,750 Working Capital Working capital is a non-GAAP measure.
The Master Loan Agreements may be used for financing of equipment between us and the lenders pursuant to one or more equipment notes (“Equipment Notes”). Each Equipment Note constitutes a separate, distinct and independent financing of equipment and contractual obligation.
The Master Loan Agreements may be used for financing of equipment between us and the lenders pursuant to one or more equipment notes (“Equipment Notes”). Each Equipment Note constitutes a separate, distinct and independent financing of equipment and contractual obligation. As of December 31, 2024, we had one outstanding Equipment Note collateralized by equipment and vehicles owned by us.
During 2023 and 2022, the Company repurchased 25,042 and 442,167 shares, respectively of its common stock under repurchase programs at a weighted-average price of $114.55 and $83.64 per share, respectively.
During 2024 and 2023, the Company repurchased 643,549 and 25,042 shares, respectively of its common stock under repurchase programs at a weighted-average price of $116.54 and $114.55 per share, respectively.
Using both EBITDA and net income to evaluate the business allows management and investors to (a) assess our relative performance against our competitors and (b) monitor our capacity to generate returns for our shareholders. 36 TABLE OF CONTENTS The following table provides a reconciliation of net income attributable to MYR Group Inc. to EBITDA: For the year ended December 31, (in thousands) 2023 2022 2021 Net income attributable to MYR Group Inc. $ 90,990 $ 83,381 $ 85,010 Net loss - noncontrolling interests — — (4) Net income 90,990 83,381 85,006 Interest expense, net 4,051 3,376 1,729 Income tax expense 34,014 30,823 31,300 Depreciation and amortization 59,138 58,170 46,205 EBITDA $ 188,193 $ 175,750 $ 164,240 We also use EBITDA as a liquidity measure.
Using both EBITDA and net income to evaluate the business allows management and investors to (a) assess our relative performance against our competitors and (b) monitor our capacity to generate returns for our shareholders. 36 TABLE OF CONTENTS The following table provides a reconciliation of net income to EBITDA: For the year ended December 31, (in thousands) 2024 2023 2022 Net income $ 30,263 $ 90,990 $ 83,381 Add: Interest expense, net 6,110 4,051 3,376 Income tax expense 16,230 34,014 30,823 Depreciation and amortization 65,189 59,138 58,170 EBITDA $ 117,792 $ 188,193 $ 175,750 We also use EBITDA as a liquidity measure.
Gains from the sale of property and equipment are attributable to routine sales of property and equipment that are no longer useful or valuable to our ongoing operations. 34 TABLE OF CONTENTS Interest expense. Interest expense was $4.9 million for the year ended December 31, 2023 compared to $3.6 million for the year ended December 31, 2022.
Gains from the sale of property and equipment in the year ended December 31, 2024 were $6.9 million compared to $4.2 million in the year ended December 31, 2023. Gains from the sale of property and equipment are attributable to routine sales of property and equipment that are no longer useful or valuable to our ongoing operations.
This increase was primarily attributable to higher interest rates partially offset by lower average debt balances during the year ended December 31, 2023 as compared to the year ended December 31, 2022. Other income (expense), net .
Interest expense was $6.5 million for the year ended December 31, 2024 compared to $4.9 million for the year ended December 31, 2023. This increase was primarily attributable to higher average debt balances partially offset by lower interest rates during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The Company was in compliance with all of its financial covenants under the Credit Agreement as of December 31, 2023. As of December 31, 2023, we had $13.2 million debt outstanding under the Facility. We had $12.9 million debt outstanding under a previous facility as of December 31, 2022.
The Company was in compliance with all of its financial covenants under the Credit Agreement as of December 31, 2024. We had $58.4 million and $13.2 million of borrowings outstanding under the Facility as of December 31, 2024 and December 31, 2023, respectively.
The year-over-year increase was primarily due to an increase in employee-related expenses to support the growth in our operations and an increase of $5.0 million related to contingent compensation expense related to a prior acquisition. Amortization of intangible assets .
The year-over-year increase was primarily due to an increase in employee-related expenses to support future growth in our operations and an increase of $1.1 million related to contingent compensation expense related to a prior acquisition, partially offset by a decrease in employee incentive compensation costs.
The net unfavorable changes of $133.0 million in cash provided by working capital accounts, mainly related to construction activities, was due to the timing of billings and payments under our contracts. The favorable change of $43.6 million in other liabilities was primarily due to the timing of employee related wage and tax payments.
The net favorable changes of $119.3 million in cash provided by working capital accounts, mainly related to construction activities, was due to the timing of billings and payments under our contracts.
Critical Accounting Policies The discussion and analysis of our financial condition and results of operations are based on our Financial Statements, which have been prepared in accordance with GAAP.
New Accounting Pronouncements For a discussion of recent accounting pronouncements, see Note 1 — Organization, Business and Significant Accounting Policies in the Notes to our Financial Statements. Critical Accounting Policies The discussion and analysis of our financial condition and results of operations are based on our Financial Statements, which have been prepared in accordance with GAAP.
Bidding and construction activity for small to medium-size transmission projects and upgrades remain active, and we expect this trend to continue. 30 TABLE OF CONTENTS As a result of reduced spending by United States utilities on their distribution systems for many years, we believe there is a need for sustained investment by utilities on their distribution systems to properly maintain or meet reliability requirements.
Bidding and construction activity for small to medium-size transmission projects and upgrades remain active, and we expect this trend to continue. We believe there is a need for further investment by utilities on their distribution systems to properly maintain or meet reliability requirements. We continue to see strong bidding activity in some of our electric distribution markets.
Gross profit is calculated by subtracting contract costs from revenue. Contract costs consist primarily of salaries, wages and benefits to employees, depreciation, fuel and other equipment expenses, equipment rentals, subcontracted services, insurance, facilities expenses, materials and parts and supplies. Various factors affect our gross margins on a quarterly or annual basis, including those listed below. Performance Risk.
Gross profit is calculated by subtracting contract costs from revenue. Contract costs consist primarily of salaries, wages and benefits to employees, depreciation, fuel and other equipment expenses, equipment rentals, subcontracted services, insurance, facilities expenses, materials and parts and supplies.
In addition, the United States has experienced decades of underfunded economic expansion and aging infrastructure which have challenged the capacity of public water and transportation infrastructure forcing states and municipalities to seek creative means to fund needed expansion and repair. We believe the need for expanding public infrastructure will offer opportunity in our C&I segment for several years.
In addition, the United States has experienced decades of underfunded economic expansion and aging infrastructure that have challenged the capacity of public water and transportation infrastructure forcing states and municipalities to seek creative means to fund needed expansion and repair.
The $96.5 million year-over-year decline in cash provided by operating activities was primarily due to unfavorable net changes in operating assets and liabilities of $93.9 million, offset by a $7.6 million increase in net income.
The $16.1 million year-over-year increase in cash provided by operating activities was primarily due to favorable net changes in operating assets and liabilities of $74.4 million, offset by a $60.7 million decrease in net income.
These decreases were partially offset by positive significant estimated gross profit changes totaling 0.2% of revenues mostly related to favorable change orders, better-than-anticipated productivity and favorable weather on a project.
These decreases were partially offset by positive significant estimated gross profit changes totaling 2.1% of revenues largely related to better-than-anticipated productivity, some of which related to clean energy projects, favorable change orders and favorable job closeouts.
Revenues from transmission projects represented 66.1% and 62.1%, of T&D segment revenue for the year ended December 31, 2023 and 2022, respectively. Operating income for our T&D segment for the year ended December 31, 2023 was $149.7 million compared to $138.9 million for the year ended December 31, 2022, an increase of $10.8 million, or 7.8%.
Revenues from transmission projects represented 60.6% and 66.1%, of T&D segment revenue for the year ended December 31, 2024 and 2023, respectively. Operating income for our T&D segment for the year ended December 31, 2024 was $69.4 million compared to $149.7 million for the year ended December 31, 2023, a decrease of $80.3 million, or 53.7%.
The increase in T&D operating income from the prior year was primarily due to higher revenues as discussed above. As a percentage of revenues operating income for our T&D segment was 7.2% for the year ended December 31, 2023 compared to 8.0% for the year ended December 31, 2022.
As a percentage of revenues operating income for our T&D segment was 3.7% for the year ended December 31, 2024 compared to 7.2% for the year ended December 31, 2023.
Margins may fluctuate because of the volume of work and the impacts of pricing and job productivity, which can be impacted both favorably and negatively by customer decisions and crew productivity, as well as other factors.
Various factors affect our gross margins on a quarterly or annual basis, including those listed below. 31 TABLE OF CONTENTS Performance Risk. Margins may fluctuate because of the volume of work and the impacts of pricing and job productivity, which can be impacted both favorably and negatively by customer decisions and crew productivity, as well as other factors.
Segment Results The following table sets forth, for the periods indicated, statements of operations data by segment, segment net sales as a percentage of total net sales and segment operating income as a percentage of segment net sales: For the Year Ended December 31, 2023 2022 (dollars in thousands) Amount Percent Amount Percent Contract revenues: Transmission & Distribution $ 2,089,196 57.3 % $ 1,745,792 58.0 % Commercial & Industrial 1,554,709 42.7 1,262,750 42.0 Total $ 3,643,905 100.0 $ 3,008,542 100.0 Operating income (loss): Transmission & Distribution $ 149,703 7.2 $ 138,886 8.0 Commercial & Industrial 45,889 3.0 43,159 3.4 Total 195,592 5.3 182,045 6.0 Corporate (66,499) (1.8) (67,138) (2.2) Consolidated $ 129,093 3.5 % $ 114,907 3.8 % Transmission & Distribution Revenues for our T&D segment for the year ended December 31, 2023 were $2.09 billion compared to $1.75 billion for the year ended December 31, 2022, an increase of $343.4 million, or 19.7%.
The decrease was primarily for the reasons stated above. 34 TABLE OF CONTENTS Segment Results The following table sets forth, for the periods indicated, statements of operations data by segment, segment net sales as a percentage of total net sales and segment operating income as a percentage of segment net sales: For the Year Ended December 31, 2024 2023 (dollars in thousands) Amount Percent Amount Percent Contract revenues: Transmission & Distribution $ 1,880,501 55.9 % $ 2,089,196 57.3 % Commercial & Industrial 1,481,789 44.1 1,554,709 42.7 Total $ 3,362,290 100.0 $ 3,643,905 100.0 Operating income: Transmission & Distribution $ 69,374 3.7 $ 149,703 7.2 Commercial & Industrial 48,041 3.2 45,889 3.0 Total 117,415 3.5 195,592 5.3 Corporate (63,333) (1.9) (66,499) (1.8) Consolidated $ 54,082 1.6 % $ 129,093 3.5 % Transmission & Distribution Revenues for our T&D segment for the year ended December 31, 2024 were $1.88 billion compared to $2.09 billion for the year ended December 31, 2023, a decrease of $208.7 million, or 10.0%.
Legislation and regulation that promotes domestic manufacturing could also create opportunity for our C&I segment. We expect the long-term growth in our C&I segment to generally track the overall growth of the regions we serve. We continued to implement strategies that further expand our capabilities and effectively allocate capital.
We believe the need for expanding public infrastructure in both the United States and Canada will offer opportunity in our C&I segment for several years. Legislation and regulation that promotes domestic manufacturing could also create opportunity for our C&I segment. We expect the long-term growth in our C&I segment to generally track the overall growth of the regions we serve.
The $185.7 million of cash used in investing activities in the year ended December 31, 2022 consisted of $110.7 million to acquire the Powerline Plus Companies and $77.1 million for capital expenditures, partially offset by $2.0 million of proceeds from the sale of equipment.
During the years ended December 31, 2024 and 2023, we used net cash of $67.2 million and $79.1 million, respectively, in investing activities. The $67.2 million of cash used in investing activities in the year ended December 31, 2024 consisted of $75.9 million for capital expenditures, partially offset by $8.7 million of proceeds from the sale of equipment.
The increase in revenue was related to an increase of $297.5 million in revenue on transmission projects, primarily related to an increase in revenue on clean energy projects, and an increase of $45.9 million in revenue on distribution projects.
The decrease in revenue was related to a decrease of $241.1 million in revenue on transmission projects, primarily related to the mechanical completion of certain clean energy projects, partially offset by an increase of $32.4 million in revenue on distribution projects.
During the year ended December 31, 2023, significant estimated gross profit changes negatively impacted operating income as a percentage of revenues by 1.7% and largely related to labor and project inefficiencies, some of which were associated with clean energy projects, inclement weather, supply chain disruptions and inflation.
During the year ended December 31, 2024, significant estimated gross profit changes negatively impacted operating income as a percentage of revenues by 5.7% with 5.5% of the impact related to losses on certain clean energy projects that have reached mechanical completion.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeIf the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, CDOR, or Term SOFR Reference Rate rises, any interest payment obligations would increase and have a negative effect on our cash flow and financial condition.
Biggest changeIf the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, Term CORRA, or Term SOFR Reference Rate rises, any interest payment obligations would increase and have a negative effect on our cash flow and financial condition.
If market rates of interest on all our revolving debt as of December 31, 2023, which is subject to variable rates, permanently increased by 1%, the increase in interest expense on all revolving debt would decrease future income before provision for income taxes and cash flows by approximately $0.1 million annually.
If market rates of interest on all our revolving debt as of December 31, 2024, which is subject to variable rates, permanently increased by 1%, the increase in interest expense on all revolving debt would decrease future income before provision for income taxes and cash flows by approximately $0.6 million annually.
If market rates of interest on all our revolving debt, which is subject to variable rates as of December 31, 2023, permanently decreased by 1%, the decrease in interest expense on all debt would increase future income before provision for income taxes and cash flows by approximately $0.1 million annually.
If market rates of interest on all our revolving debt, which is subject to variable rates as of December 31, 2024, permanently decreased by 1%, the decrease in interest expense on all debt would increase future income before provision for income taxes and cash flows by approximately $0.6 million annually.
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, CDOR, and Term SOFR Reference Rate.
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.
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 December 31, 2023, we had $13.2 million of borrowings under our Facility.
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 December 31, 2024, we had $58.4 million of borrowings under our Facility.
Removed
Item 7A. Quantitative and Qualitative Disclosures About Market Risk We were not parties to any derivative instruments and had no derivative financial instruments during the years ended December 31, 2023, 2022 or 2021.
Added
Item 7A. 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 December 31, 2024, we were not party to any derivative instruments.
Added
We did not use any material derivative financial instruments during the years ended December 31, 2024, 2023 or 2022, 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.

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