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What changed in MYR GROUP INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of MYR GROUP INC.'s 2024 and 2025 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 2025 report.

+182 added−173 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-26)

Top changes in MYR GROUP INC.'s 2025 10-K

182 paragraphs added · 173 removed · 164 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe believe that the principal competitive factors that customers consider in our industry are: • price and flexible contract terms; • safety programs and safety performance; • reputation and relationships with the customer; • technical expertise and experience; • management team experience; • geographic presence and breadth of service offerings; • willingness to accept risk; • quality of service execution; • specialized equipment, tooling and centralized fleet structure; • the availability of qualified and licensed personnel; • adequate financial resources and bonding capacity; • technological capabilities; and • emergency restoration abilities and reputation.
Biggest changeWe believe that the principal competitive factors that customers consider in our industry are: • price and flexible contract terms; • safety programs and safety performance; • reputation and relationships with the customer; • technical expertise and experience; • management team experience; • geographic presence and breadth of service offerings; • willingness to accept risk; • quality of service execution; • specialized equipment, tooling and centralized fleet structure; • the availability of qualified and licensed personnel; • adequate financial resources and bonding capacity; • technological capabilities; and • emergency restoration abilities and reputation. 5 TABLE OF CONTENTS While we believe our customers consider a number of factors when selecting a service provider, most of their work is awarded through a bid process where price is always a principal factor.
Typical C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure.
Typical C&I contracts cover electrical contracting services for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure.
Huntington served as senior vice president & chief financial officer of USIC, LLC; an underground utility location and damage prevention company from 2019 to 2022. Ms. Huntington served as senior vice president, Enterprise Strategy for OneAmerica Financial Partners, Inc. a financial services company from 2015 to 2019. Prior to OneAmerica Financial Partners, Ms.
Huntington served as senior vice president & chief financial officer of USIC, LLC, an underground utility location and damage prevention company, from 2019 to 2022. Ms. Huntington served as senior vice president, Enterprise Strategy for OneAmerica Financial Partners, Inc., a financial services company from, 2015 to 2019. Prior to OneAmerica Financial Partners Inc., Ms.
For many of our unit-price, time-and-equipment, time-and-materials and cost-plus contracts, we only include projected revenue for a three-month period in the calculation of backlog, although these types of contracts are generally awarded as part of MSAs that typically have a one- to three-year duration from execution.
For many of our unit-price, time-and-equipment, time-and-materials and cost-plus contracts, we only include projected revenue for a three-month period in the calculation of backlog, although these types of contracts are generally awarded as part of MSAs that typically have a one- to four-year duration from execution.
Stern 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.
Stern 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.
Egan also served as president of several of our subsidiary companies including, Sturgeon Electric Company, Inc., from May 2020 to May 2023. Mr. Egan has held a number of additional positions since joining the Company in 1991, including regional vice president, vice president, district manager, operations manager, and project manager. William F.
Egan also served as president of several of our subsidiary companies including, Sturgeon Electric Company, Inc., from May 2020 to May 2023. Mr. Egan held a number of additional positions since joining the Company in 1991, including regional vice president, vice president, district manager, operations manager, and project manager. William F.
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.
Huntington worked for Indianapolis Power & Light Company, an electrical utility and subsidiary of The AES Corporation, serving as president and chief executive officer 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.
Risk Factors — Our business may be affected by seasonal and other variations, including severe weather conditions and the nature of our work environment.” Human Capital Resources We believe that our people are our greatest assets and the success and growth of our business depend in large part on our ability to attract, develop and retain a diverse population of talented, qualified and highly skilled employees at all levels of our organization, including the individuals who comprise our workforce as well as our executive officers and other key personnel.
Risk Factors — Our business may be affected by seasonal and other variations, including severe weather conditions and the nature of our work environment.” Human Capital Resources We believe that our people are our greatest assets and the success and growth of our business depend in large part on our ability to attract, develop and retain talented, qualified and highly skilled employees at all levels of our organization, including the individuals who comprise our workforce as well as our executive officers and other key personnel.
Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one to three years in duration. Under MSAs, customers generally agree to contract with us for certain services in a specified geographic region.
Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one to four years in duration. Under MSAs, customers generally agree to contract with us for certain services in a specified geographic region.
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.
Approximately 85% 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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 17 — Segment Information to our Financial Statements. 3 TABLE OF CONTENTS Customers Our T&D customers include many of the leading providers in the electric utility industry.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 16 — Segment Information to our Financial Statements. 3 TABLE OF CONTENTS Customers Our T&D customers include many of the leading providers in the electric utility industry.
Our estimated backlog also includes our proportionate share of unconsolidated joint venture contracts. Additional information related to our remaining performance obligations is provided in Note 12 — Revenue Recognition to our Financial Statements. See also “Item 1A.
Our estimated backlog also includes our proportionate share of unconsolidated joint venture contracts. Additional information related to our remaining performance obligations is provided in Note 11 — Revenue Recognition to our Financial Statements. See also “Item 1A.
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 51 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.
These variation can be influenced by a number of factors such as weather, daylight hours, availability of workforce, asset readiness and holidays. See also “Item 1A.
These variations can be influenced by a number of factors such as weather, daylight hours, availability of workforce, asset readiness and holidays. See also “Item 1A.
Materials In many cases, our T&D customers are responsible for supplying materials on projects; however, under certain contracts, we may agree to provide all or a portion of the required materials. For our C&I contracts, we usually procure the necessary materials and supplies. We are not dependent on specific suppliers for materials or supplies.
Materials In many cases, our T&D customers are responsible for supplying materials on projects; however, under certain contracts, we may agree to provide all or a portion of the required materials. For our C&I contracts, we usually procure the necessary materials and supplies.
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, 2025, 2024 and 2023, revenues derived from T&D customers accounted for 54.7%, 55.9% and 57.3% of our total revenues, respectively, and revenues derived from C&I customers accounted for 45.3%, 44.1% and 42.7% of our total revenues, respectively. Types of Service Arrangements and Bidding Process We enter into contracts principally through a competitive bid process.
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.
Our backlog as of December 31, 2025 and 2024 included our proportionate share of unconsolidated joint venture backlog totaling $176.1 million and $172.3 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.
Risk Factors — Our industry is highly competitive.” 5 TABLE OF CONTENTS T&D Competition Our T&D segment 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.
See “Item 1A. Risk Factors — Our industry is highly competitive.” T&D Competition Our T&D segment 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.
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.
For the years ended December 31, 2025, 2024 and 2023, our top 10 customers accounted for 38.0%, 37.8%, and 37.9%, of our revenues, respectively. For the years ended December 31, 2025, 2024 and 2023, no single customer accounted for more than 10.0% of annual revenues.
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, 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. The ability to post bonds provides us with a competitive advantage over smaller or less financially secure competitors.
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.
Information about our Executive Officers Name Age on February 25, 2026 Position Richard S. Swartz 62 President and Chief Executive Officer Kelly M. Huntington 50 Senior Vice President and Chief Financial Officer Brian K. Stern 56 Senior Vice President, Chief Operating Officer T&D Don A. Egan 55 Senior Vice President, Chief Operating Officer C&I William F.
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.
As of December 31, 2025, we had approximately $491.5 million in original face amount of bonds outstanding for projects in our T&D segment and approximately $1.85 billion for projects in our C&I segment. Our estimated remaining cost to complete these bonded projects for both segments was approximately $817.8 million as of December 31, 2025.
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.
As of December 31, 2025, we had approximately 9,000 employees, consisting of approximately 7,200 craft employees, with the remaining 1,800 employees mainly consisting of district managers, project managers, superintendents, estimators, office managers, administrative staff, clerical personnel and executive officers.
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.
Fixed-price contracts accounted for 57.0% of total revenue for the year ended December 31, 2025, including 34.3% of our total revenue for our T&D segment and 84.5% of our total revenue for our C&I segment. Our EPC contracts are typically fixed-price and may be entered into through joint ventures.
From time to time we guarantee the obligations of our subsidiaries, including obligations under certain contracts with customers, certain lease agreements and, in some states, obligations in connection with obtaining contractors’ licenses.
At times we may also be required to provide a letter of credit in connection with services provided to our customers. From time to time we guarantee the obligations of our subsidiaries, including obligations under certain contracts with customers, certain lease agreements and, in some states, obligations in connection with obtaining contractors’ licenses.
We generally focus on improving our profitability by selecting projects we believe will provide attractive margins, actively monitoring the costs of completing our projects, holding customers accountable for costs related to changes to contract specifications and rewarding our employees for effectively managing costs. Transmission and Distribution segment. We have operated in the transmission and distribution industry since 1891.
We generally focus on improving our profitability by selecting projects we believe will provide attractive margins, actively monitoring the costs of completing our projects, holding customers accountable for costs related to changes to contract specifications and rewarding our employees for effectively managing costs. Both of our segments undertake a mix of projects of all sizes and complexity.
We are one of the largest U.S. contractors servicing the T&D sector of the electric utility industry.
Transmission and Distribution segment. We have operated in the transmission and distribution industry since 1891. We are one of the largest U.S. contractors servicing the T&D sector of the electric utility industry.
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.
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, 2025 (in thousands) Total Amount estimated to be recognized within 12 months Amount estimated to be recognized after 12 months Total backlog at December 31, 2024 T&D $ 1,018,116 $ 951,413 $ 66,703 $ 818,185 C&I 1,806,152 1,486,352 319,800 1,758,233 Total $ 2,824,268 $ 2,437,765 $ 386,503 $ 2,576,418 Changes in backlog from period to period are primarily the result of fluctuations in the timing of awards and revenue recognition of contracts.
Removed
While we believe our customers consider a number of factors when selecting a service provider, most of their work is awarded through a bid process where price is always a principal factor. See “Item 1A.
Added
We are not dependent on specific suppliers for materials or supplies as they are generally available from a variety of suppliers at competitive prices.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFurthermore, 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.
Biggest changeDuring 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.
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.
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, 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.
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.
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, tariffs 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, tariffs, government shutdowns, 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.
We have from time to time experienced shortages of certain types of qualified personnel, such as linemen, field supervisors, project managers and engineers, in certain regions. In addition, our projects are sometimes located in remote areas, which can make recruitment and deployment of our personnel challenging.
We have from time-to-time experienced shortages of certain types of qualified personnel, such as linemen, wiremen, field supervisors, project managers and engineers, in certain regions. In addition, our projects are sometimes located in remote areas, which can make recruitment and deployment of our personnel challenging.
Furthermore, under standard terms in the surety market, sureties issue or continue bonds on a project-by-project basis and can decline to issue bonds at any time or require the posting of additional collateral as a condition to issuing or renewing any bonds.
Furthermore, under standard terms in the surety market, sureties issue or continue bonds on a project-by-project basis and can decline to issue bonds at any time or require the posting of collateral as a condition to issuing or renewing any bonds.
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.
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 utility, electricity transmission, clean energy or our business activities may impact demand for our services.
These difficulties have and may continue to be the result of delays in designs; engineering information or materials provided by the customer or a third party; delays or difficulties in equipment and material delivery; schedule changes; delays from our customer’s failure to timely obtain permits, rights-of-way or to meet other regulatory requirements; weather-related delays; delays caused by difficult worksite environments; delays caused by inefficiencies and not achieving expected labor performance and other factors, some of which are beyond our control.
These difficulties have in the past been and may continue to be the result of delays in designs; engineering information or materials provided by the customer or a third party; delays or difficulties in equipment and material delivery; schedule changes; delays from our customer’s failure to timely obtain permits, rights-of-way or to meet other regulatory requirements; weather-related delays; delays caused by difficult worksite environments; delays caused by government shutdowns; delays caused by inefficiencies and not achieving expected labor performance and other factors, some of which are beyond our control.
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.
As of December 31, 2025, approximately 85% 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.
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.
Increased IT security threats and other more sophisticated computer crimes, including the use of new and emerging technologies such as artificial intelligence, 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.
These actions could be taken on short notice. If our surety providers or lenders were to limit or eliminate our access to bonding, letters of credit or guarantees, our alternatives would include seeking capacity from other sureties and lenders, finding more business that does not require bonds or allows for other forms of collateral for project performance, such as cash.
If our surety providers or lenders were to limit or eliminate our access to bonding, letters of credit or guarantees, our alternatives would include seeking capacity from other sureties and lenders or finding more business that does not require bonds or allows for other forms of collateral for project performance, such as cash.
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.
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.
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.
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.
If the IT systems, networks or service providers we rely upon fail to function properly, or if we suffer a loss or disclosure of sensitive information, we may suffer interruptions in our ability to manage operations, be subject to government enforcement actions, litigation, and reputational, competitive and business harm which may adversely impact our business, financial position, results of operations and cash flows, competitive position and reputation.
If the IT systems, networks or service providers we rely upon fail to function properly, or if we suffer a loss or disclosure of sensitive information, we may suffer interruptions in our ability to manage operations, be subject to government enforcement actions, litigation, and reputational, competitive and business harm which may adversely impact our business, financial position, results of operations and cash flows, competitive position and reputation. 24 TABLE OF CONTENTS As techniques used to obtain unauthorized access or sabotage systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures.
The commencement of new, large-scale infrastructure projects or increased demand for infrastructure improvements, as well as the shrinking electric utility workforce, may reduce the pool of skilled workers available to us. Labor shortages could impair our ability to maintain our business or grow our revenues.
The commencement of any new, large-scale projects or increased demand for infrastructure improvements, as well as the shrinking skilled electrical workforce, may reduce the pool of skilled workers available to us.
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.
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.
In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment. The most significant estimates we use are related to costs to complete contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, acquisition-related contingent earn-out consideration liabilities, the recoverability of goodwill and intangibles, and accounts receivable reserves.
The most significant estimates we use are related to costs to complete contracts, variable consideration inclusive of pending change orders and claims, shared savings, useful lives of property and equipment, insurance reserves, the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions, estimates surrounding stock-based compensation, the recoverability of goodwill and intangibles and allowance for doubtful accounts.
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.
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.
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.
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.
If we are unable to hire personnel with the requisite skills, we may also be forced to incur significant training expenses. 14 TABLE OF CONTENTS In addition, the success of our business depends upon the continued efforts and abilities of our employees. The relationships between our employees and our customers are important to obtaining and retaining business.
Labor shortages could materially increase our cost or impair our ability to maintain our business or grow our revenues. 14 TABLE OF CONTENTS In addition, the success of our business depends upon the continued efforts and abilities of our employees. The relationships between our employees and our customers are important to obtaining and retaining business.
Removed
As techniques used to obtain unauthorized access or sabotage systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures.
Added
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.
Removed
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.
Added
Furthermore, our income tax assets and liabilities could be adversely affected by numerous other factors, including operating income earned and tax rates in various jurisdictions being different than anticipated as well as changes in the valuation of deferred income tax assets and liabilities.
Added
In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment.
Added
These actions could be taken on short notice.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe do not believe that any owned or leased facility is material to our operations and, if necessary, we could obtain replacement facilities for our leased facilities.
Biggest changeWe do not believe that any owned or leased facility is material to our operations and, if necessary, we could obtain replacement facilities for our leased facilities. 25 TABLE OF CONTENTS
As 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.
As of December 31, 2025, 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 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeWe do not believe that any of these proceedings, separately or in the aggregate, would be expected to have a material adverse effect on our financial position, results of operations, or cash flows.
Biggest changeWe do not believe that any of these proceedings, separately or in aggregate, would be expected to have a material adverse effect on our financial position, results of operations, or cash flows.
However, if facts and circumstances change in the future, we cannot be certain that an adverse outcome of one or more of these claims would not have a material adverse effect on our financial condition, results of operations, or cash flows. Item 4. Mine Safety Disclosures Not Applicable. 25 TABLE OF CONTENTS PART II
However, if facts and circumstances change in the future, we cannot be certain that an adverse outcome of one or more of these claims would not have a material adverse effect on our financial condition, results of operations, or cash flows. Item 4. Mine Safety Disclosures Not Applicable. 26 TABLE OF CONTENTS PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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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.
Biggest changePurchases of Common Stock On July 30, 2025, the Company announced that its Board of Directors had approved a new $75.0 million share repurchase program (the "Repurchase Program"). We did not purchase any shares of common stock in October, November or December of 2025.
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 comparison assumes that $100 was invested on December 31, 2020 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 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 2025 Peer Group and 2024 Peer Group were selected because they comprise a broad group of publicly traded companies, each of which has some operations similar to ours.
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.
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 20, 2026, we had 5 holders of record of our common stock.
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”).
The following graph compares, for the period from December 31, 2020 to December 31, 2025, 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, a new peer group index selected by our management that includes ten publicly traded companies within our industry (the “2025 Peer Group”) and an old peer group index selected by our management that includes eleven publicly traded companies within our industry (the “2024 Peer 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.
Graph presents entire 2025 Peer Group and entire 2024 Peer Group. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN** Among MYR Group, Inc., the S&P 500 Index, the Russell 2000 Index, 2024 Peer Group and 2025 Peer Group **$100 invested on 12/31/2020 in stock or including reinvestment of dividends. Fiscal year ending December 31.
When taken as a whole, the Peer Group more closely resembles our total business than any individual company in the group while reducing the impact of a significant change in any one of the Peer Group company’s stock price. The Peer Group is composed of the following companies: Astec Industries, Inc.
When taken as a whole, each of the 2025 Peer Group and 2024 Peer Group more closely resembles our total business than any individual company in the group while reducing the impact of a significant change in any one of the 2025 Peer Group and 2024 Peer Group company’s stock price.
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.
As of December 31, 2025, the Company had $75.0 million of funds available to repurchase shares of the Company’s common stock under the Repurchase Program. The Repurchase Program expired on February 4, 2026.
Removed
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
Added
The Repurchase Program replaced and superseded the Company’s prior $75.0 million repurchase program, under which the Company had exhausted substantially all of the available funds, and such prior repurchase program was terminated.
Added
In 2025, the Company removed Matrix Service Company (“Matrix”) from our peer group and therefore created a new peer group. The removal of Matrix was to better align our peer group with MYR Group’s financial size. The removal of Matrix is the only difference between our 2025 Peer Group and the 2024 Peer Group.
Added
The 2025 Peer Group is composed of the following companies: Astec Industries, Inc. 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* 27 TABLE OF CONTENTS The 2024 Peer Group is composed of the following companies: Astec Industries, Inc.
Added
Copyright© 2026 Standard & Poor's, a division of S&P Global. All rights reserved Copyright© 2026 Russell Investment Group.
Added
All right reserved. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 MYR Group Inc. 100.00 183.94 153.19 240.65 247.54 363.56 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 Russell 2000 100.00 114.82 91.35 106.82 119.14 134.40 2024 Peer Group 100.00 143.83 151.53 209.62 347.21 513.95 2025 Peer Group 100.00 144.45 152.31 210.62 349.19 517.35 Item 6. [Reserved] 28 TABLE OF CONTENTS

Item 7. Management's Discussion & Analysis

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

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Biggest changeThe decrease in revenue included a decrease of $72.1 million in revenue on fixed priced contracts and a decrease of $12.1 million in revenues on unit price work, partially offset by an increase of $11.2 million on T&E contracts. 35 TABLE OF CONTENTS Operating income for our C&I segment for the year ended December 31, 2024 was $48.0 million compared to $45.9 million for the year ended December 31, 2023, an increase of $2.1 million, or 4.7%.
Biggest changeThe increase in revenue was related to an increase of $195.6 million in revenue on fixed priced contracts, partially offset by a decrease of $15.6 million on T&E contracts and a decrease of $6.3 million in revenues on unit price work.
The majority of C&I contracts cover electrical contracting services for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure.
The majority of C&I contracts cover electrical contracting services for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure.
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.
In addition, the United States has experienced decades of underfunded economic expansion and aging infrastructure that have challenged the capacity of public transportation and water infrastructure forcing states and municipalities to seek creative means to fund needed expansion and repair.
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.
For many of our unit-price, time-and-equipment, time-and-materials and cost-plus contracts, we only include projected revenue for a three-month period in the calculation of backlog, although these types of contracts are generally awarded as part of MSAs that typically have a one- to three-year duration from execution.
For many of our unit-price, time-and-equipment, time-and-materials and cost-plus contracts, we only include projected revenue for a three-month period in the calculation of backlog, although these types of contracts are generally awarded as part of MSAs that typically have a one- to four-year duration from execution.
It is typical during the winter months that parts of the country may experience snow or rainfall, which can affect our crews’ ability to work efficiently. Recent abnormal weather patterns including those related to excessive rainfall and increased thaw and freeze cycles also affect our crews’ ability to work efficiently.
It is typical during the winter months that parts of the country may experience snow or rainfall, which can affect our crews’ ability to work efficiently. Abnormal weather patterns including those related to excessive rainfall and increased thaw and freeze cycles also affect our crews’ ability to work efficiently.
We generally focus on managing our profitability by: selecting projects that we believe will provide attractive margins; actively monitoring the costs of completing our projects; holding customers accountable for costs related to changes to contract specifications and rewarding our employees for controlling costs. 29 TABLE OF CONTENTS The demand for construction and maintenance services from our customers has been, and will likely continue to be, cyclical in nature and vulnerable to downturns in the markets we serve as well as the economy in general.
We generally focus on managing our profitability by: selecting projects that we believe will provide attractive margins; actively monitoring the costs of completing our projects; holding customers accountable for costs related to changes to contract specifications and rewarding our employees for controlling costs. 30 TABLE OF CONTENTS The demand for construction and maintenance services from our customers has been, and will likely continue to be, cyclical in nature and vulnerable to downturns in the markets we serve as well as the economy in general.
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.
Various factors affect our gross margins on a quarterly or annual basis, including those listed below. 32 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.
If the carrying value of goodwill or other indefinite lived assets exceeds its implied fair value, an impairment charge would be recorded in the statement of operations. As a result of the annual qualitative review process in 2023 and 2022, we determined it was not necessary to perform a quantitative assessment.
If the carrying value of goodwill or other indefinite lived assets exceeds its implied fair value, an impairment charge would be recorded in the statement of operations. As a result of the annual qualitative review process in 2025 and 2023, we determined it was not necessary to perform a quantitative assessment.
We believe the borrowing availability under our $490 million revolving credit facility and future cash flow from operations will enable us to support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares. We continue to manage our increasing operating costs, including increasing insurance, equipment, labor and material costs.
We believe the borrowing availability under our $490 million revolving credit facility, our cash on hand and future cash flow from operations will enable us to support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares. We continue to manage our increasing operating costs, including increasing insurance, equipment, labor and material costs.
We are not aware of any claims currently asserted or threatened under any of these letters of credit that are material, individually, or in the aggregate.
We are not aware of any claims currently asserted or threatened under any of these letters of credit that are material, individually, or in aggregate.
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.
Additionally, we are required to allocate more working capital to projects when we are required to provide materials. 33 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.
Certain health benefit plans are subject to stop-loss limits of up to $0.2 million, for qualified individuals. Losses up to the deductible and stop-loss amounts are accrued based upon our estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported.
Certain health benefit plans are subject to stop-loss limits of up to $0.3 million, for qualified individuals. Losses up to the deductible and stop-loss amounts are accrued based upon our estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported.
We analyze specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible the account balance is written-off against the allowance for doubtful accounts. 43 TABLE OF CONTENTS
We analyze specific accounts receivable balances, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible the account balance is written-off against the allowance for doubtful accounts. 43 TABLE OF CONTENTS
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.
The Company’s leases have remaining terms ranging from less than one to twelve 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 expect to see an increase in the distribution market opportunities during in 2025. 30 TABLE OF CONTENTS We believe the increasing demand for electricity associated with additional power requirements, driven by increased electrification associated with new technologies, including the emergence and adoption of artificial intelligence technologies as well as increased power needs connected to the reshoring of manufacturing, will require significant investment by our customers in both of our reporting segments.
We expect to see an increase in the distribution market opportunities during in 2026. 31 TABLE OF CONTENTS We believe the increasing demand for electricity associated with additional power requirements, driven by increased electrification associated with new technologies, including the emergence and adoption of artificial intelligence technologies as well as increased power needs connected to the reshoring of manufacturing, will require significant investment by our customers in both of our reporting segments.
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%.
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, 2025, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.4%.
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.
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, 2025 and 2024.
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.
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 $42.4 million as of December 31, 2025.
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.
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, 2025 of $3.66 billion compared to $3.36 billion for the year ended December 31, 2024.
Performance and Payment Bonds and Parent Guarantees Many customers, particularly in connection with new construction, require us to post performance and payment bonds typically issued by a surety or insurance company. These bonds provide a guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors.
Performance and Payment Bonds and Parent Guarantees Many customers, particularly in connection with new construction, require us to post performance and payment bonds typically issued by a surety or financial institution. These bonds provide a guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors.
We provide warranties to customers on a basis customary to the industry; however, the warranty period does not typically exceed one year. Historically, warranty claims have not been material. Total revenues do not include sales tax as we consider ourselves a pass-through conduit for collecting and remitting sales taxes.
We provide warranties to customers on a basis customary to the industry; however, the warranty period does not typically exceed two years. Historically, warranty claims have not been material. Total revenues do not include sales tax as we consider ourselves a pass-through conduit for collecting and remitting sales taxes.
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.
Non-GAAP Measures EBITDA EBITDA is a non-GAAP measure used by management that we define as net income plus interest expense net of interest income, income tax expense and depreciation and amortization, as shown in the following table.
As of December 31, 2024, one customer individually exceeded 10.0% of our accounts receivable with approximately of 11.3% of the total accounts receivable amount (excluding the impact of allowance for doubtful accounts). As of December 31, 2023, none of our customers individually exceeded 10.0% of our accounts receivable.
As of December 31, 2025, none of the Company's customers individually exceeded 10.0% of our accounts receivable. As of December 31, 2024, one customer individually exceeded 10.0% of our accounts receivable with approximately of 11.3% of the total accounts receivable amount (excluding the impact of allowance for doubtful accounts).
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.
As of December 31, 2025 and 2024, we recognized revenues of $23.5 million and $46.0 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.
Our primary short-term liquidity needs include cash for operations, debt service requirements, capital expenditures, and acquisition and joint venture opportunities. We believe we have adequate sources of liquidity to meet our long-term liquidity needs and foreseeable material cash requirements, including those associated with funding future acquisition opportunities.
Our primary short-term liquidity needs include cash for operations, debt service requirements, capital expenditures, and acquisition and joint venture opportunities. We believe we have adequate financial resources to meet our long-term liquidity needs and foreseeable material cash requirements, including those associated with funding future acquisition opportunities.
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.
Gains from the sale of property and equipment in the year ended December 31, 2025 were $4.3 million compared to $6.9 million in the year ended December 31, 2024. 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.
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.
As of December 31, 2025, we had $2.0 million outstanding finance lease obligations, consisting of short-term and long-term finance lease obligations of approximately $0.8 million and $1.2 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.
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.
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 0.5% for the year ended December 31, 2025, compared to a net decrease of 5.5% for the year ended December 31, 2024.
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.
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 $0.9 million as of December 31, 2025 and $1.1 million as of December 31, 2024.
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.
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 prior share repurchase program, $7.1 million of payments under our master equipment loan agreements, $5.9 million of shares repurchased to satisfy tax obligations under our stock compensation programs and $1.2 million of payments for finance lease obligations, partially offset by $45.2 million of net borrowings under our revolving line of credit.
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%.
During the year ended December 31, 2024, changes in estimates pertaining to certain projects decreased consolidated gross margin by 4.4%. During the year ended December 31, 2023, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.7%.
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).
For a discussion of changes for the fiscal year ended December 31, 2024 to the fiscal year ended December 31, 2023, 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, 2024 (filed February 26, 2025).
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.
Revenues from transmission projects represented 59.9%, 60.6%, and 66.1% of T&D segment revenue for the years ended December 31, 2025, 2024 and 2023, respectively. 29 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 2025, 2024 and 2023.
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.
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 2025 and 2024, we invested in capital expenditures of approximately $94.4 million and $75.9 million, respectively.
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.
The net favorable changes of $109.6 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.
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.
Purchase Commitments for Construction Equipment As of December 31, 2025, we had approximately $33.9 million in outstanding purchase obligations for certain construction equipment to be paid with cash outlays scheduled to occur in 2026.
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.
During the year ended December 31, 2025, our operating activities provided cash of $326.6 million, compared to $87.1 million for the year ended December 31, 2024. Cash flow from operations is primarily influenced by operating margins, timing of contract performance and the type of services we provide to our customers.
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.
Measured by revenues in our C&I segment, we provided 84.5%, 81.2% and 82.0% of our services under fixed-price contracts for the years ended December 31, 2025, 2024 and 2023, respectively. Overview-Revenue and Gross Margins Revenue Recognition.
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 Company was in compliance with all of its financial covenants under the Credit Agreement as of December 31, 2025. We had $47.4 million and $58.4 million in borrowings outstanding under the Facility as of December 31, 2025 and December 31, 2024, respectively.
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.
For the year ended December 31, 2025, net income was $118.4 million compared to $30.3 million for the year ended December 31, 2024. Overview-Segments Transmission and Distribution segment . Our T&D segment provides comprehensive solutions to providers in the electric utility industry.
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 .
Measured by revenues in our T&D segment, we provided 34.3%, 43.9% and 52.7% of our T&D services under fixed-price contracts during the years ended December 31, 2025, 2024 and 2023, respectively. Commercial and Industrial segment .
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.
As of December 31, 2025 and 2024, we had one outstanding Equipment Note collateralized by equipment and vehicles owned by us. As of December 31, 2025 and 2024, we also had one other equipment note outstanding collateralized by a vehicle owned by us.
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.
C&I operating income margin during the year ended December 31, 2025 was also impacted by significant changes in our estimated gross profit on certain projects resulting in a net operating income margin decrease of 2.6% for the year ended December 31, 2025, compared to a net decrease of 2.9% for the year ended December 31, 2024.
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.
Operating income, as a percentage of revenues, for our C&I segment increased to 5.9% for the year ended December 31, 2025 from 3.2% for the year ended December 31, 2024.
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 $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. During the years ended December 31, 2025 and 2024, we used cash of $94.1 million, and $40.0 million, respectively in financing activities.
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.
As of December 31, 2025, we had $34.3 million in letters of credit outstanding under our Credit Agreement, including $34.2 million related to the Company's payment obligations under its insurance programs and $0.1 million related to contract performance obligations.
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.
The increase in gross margin was primarily due to significant changes in our estimated gross profit on certain projects resulting in a net gross margin decrease of 1.4% for the year ended December 31, 2025, compared to a net gross margin decrease of 4.4% for the year ended December 31, 2024.
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.
We believe our $408.3 million borrowing availability under our revolving line of credit as of December 31, 2025, cash on hand, 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.
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.
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 $109.6 million and the favorable change of $59.3 million in other liabilities, partially offset by the net unfavorable changes of $23.6 million in prepaid expenses and other assets.
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.
As of December 31, 2025, an aggregate of approximately $2.35 billion in original face amount of bonds issued by our sureties were outstanding. Our estimated remaining cost to complete these bonded projects was approximately $817.8 million as of December 31, 2025.
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.
For the year ended December 31, 2025, our C&I revenues were $1.66 billion, or 45.3%, of our revenue, compared to $1.48 billion, or 44.1%, of our revenue for the year ended December 31, 2024 and $1.55 billion, or 42.7%, of our revenue for the year ended December 31, 2023.
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.
For the year ended December 31, 2025, our T&D revenues were $2.00 billion, or 54.7%, of our revenue, compared to $1.88 billion, or 55.9%, of our revenue for the year ended December 31, 2024 and $2.09 billion, or 57.3%, of our revenue for the year ended December 31, 2023.
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%.
Income tax expense was $42.9 million for the year ended December 31, 2025, with an effective tax rate of 26.6%, compared to $16.2 million for the year ended December 31, 2024, with an effective tax rate of 34.9%.
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.
The outstanding balance of all equipment notes was $11.6 million as of December 31, 2025, of which $4.6 million was due in the next twelve months. The outstanding balance of these equipment notes was $16.0 million as of December 31, 2024, of which $4.4 million was due in the next twelve months.
Corporate The decrease in corporate expenses for the year ended December 31, 2024 was primarily attributable to a decrease in employee incentive compensation costs, partially offset by an increase in employee-related expenses to support future growth in our operations.
Corporate The increase in corporate expenses for the year ended December 31, 2025 was primarily attributable to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth in our operations.
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.
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 estimated value of unbilled amounts are determined using a regression analysis that estimates value based on our historical experience, and is adjusted for large individual projects. The profit and corresponding revenue is recognized over the contract term based on costs incurred under the cost-to-cost method.
The estimated value of unbilled amounts is determined using a regression and other types of analysis, as well as management judgment to produce an estimated value based on the Company’s historical experience, and is adjusted for large individual projects. The profit and corresponding revenue is recognized over the contract term based on costs incurred under the cost-to-cost method.
Other expense was $1.5 million for the year ended December 31, 2024 compared to an insignificant amount of other expense for the year ended December 31, 2023. The change was largely due to foreign currency losses from changes in exchange rates on intercompany receivables.
Other expense was $0.7 million for the year ended December 31, 2025 compared to $1.5 million for the year ended December 31, 2024. The change was largely due to higher foreign currency losses from changes in exchange rates on intercompany receivables recognized during the year ended December 31, 2024.
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.
Operating income as a percentage of revenues for our T&D segment increased to 7.9% for the year ended December 31, 2025 from 3.7% for the year ended December 31, 2024.
Depending on the circumstances of such a reimbursement, we may also have to record a charge to earnings for the reimbursement. As of December 31, 2024, we had $37.3 million in letters of credit outstanding under our Credit Agreement, including $32.6 million related to the Company's payment obligations under its insurance programs and $4.7 million related to contract performance obligations.
As of December 31, 2024, we had $37.3 million in letters of credit outstanding under our Credit Agreement including $32.6 million related to the Company's payment obligations under its insurance programs and $4.7 million related to contract performance obligations.
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.
During 2025 and 2024, the Company repurchased 639,207 and 643,549 shares, respectively of its common stock under repurchase programs at a weighted-average price of $117.33 and $116.54 per share, 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) 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 following table provides a reconciliation of net cash flows provided by operating activities to EBITDA: For the year ended December 31, (in thousands) 2025 2024 2023 Net cash flows provided by operating activities $ 326,567 $ 87,115 $ 71,016 Add/(subtract) Changes in operating assets and liabilities (140,399) 11,074 85,426 Adjustments to reconcile net income to net cash flows provided by operating activities (67,752) (67,926) (65,452) Depreciation and amortization 66,512 65,189 59,138 Income tax expense 42,868 16,230 34,014 Interest expense, net 4,925 6,110 4,051 EBITDA $ 232,721 $ 117,792 $ 188,193 37 TABLE OF CONTENTS Working Capital Working capital is a non-GAAP measure.
Our C&I bidding opportunities remain strong and we believe we will see continued opportunities in the primary markets we serve such as transportation, data centers, health care, clean energy and warehousing. However, we may experience unanticipated volatility associated with potential policy changes and tariffs.
Our C&I bidding opportunities remain strong and we believe we will see continued opportunities in the primary markets we serve such as data centers, transportation, health care, manufacturing, clean energy and warehousing.
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.
These decreases were partially offset by positive significant estimated gross profit changes totaling 1.5% and largely related to better-than-anticipated productivity, favorable change orders and a favorable job closeout.
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.
As of December 31, 2025, we had outstanding short-term and long-term operating lease obligations of approximately $13.0 million and $29.4 million, respectively. The outstanding balance of operating lease obligations was $42.6 million as of December 31, 2024. 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.
Letters of Credit Some of our vendors require letters of credit to ensure reimbursement for amounts they are disbursing on our behalf, such as to beneficiaries under our insurance programs.
Letters of Credit Some of our vendors require letters of credit to ensure reimbursement for amounts they are disbursing on our behalf, such as to beneficiaries under our insurance programs. In addition, from time to time, certain customers require us to post letters of credit to guarantee performance under our contracts.
Backlog may not accurately represent the revenues that we expect to realize during any particular period. Several factors, such as the timing of contract awards, the type and duration of contracts, and the mix of subcontractor and material costs in our projects, can impact our backlog at any point in time.
Several factors, such as the timing of contract awards, the type and duration of contracts, and the mix of subcontractor and material costs in our projects, can impact our backlog at any point in time.
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.
The $94.1 million of cash used in financing activities in the year ended December 31, 2025 consisted primarily of $75.0 million of share repurchases under our prior share repurchase program, $11.0 million of net payments under our revolving line of credit, $4.4 million of payments for equipment notes, $2.6 million of shares repurchased to satisfy tax obligations under our stock compensation programs and $1.1 million of payments for finance lease obligations.
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, 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.
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, 2025 Compared to the Year Ended December 31, 2024 For the year ended December 31, (dollars in thousands) 2025 2024 Contract revenues $ 3,657,889 100.0 % $ 3,362,290 100.0 % Contract costs 3,234,103 88.4 3,071,971 91.4 Gross profit 423,786 11.6 290,319 8.6 Selling, general and administrative expenses 256,357 7.0 238,222 7.1 Amortization of intangible assets 4,818 0.1 4,869 0.1 Gain on sale of property and equipment (4,261) (0.1) (6,854) (0.2) Income from operations 166,872 4.6 54,082 1.6 Other income (expense): Interest income 723 — 415 — Interest expense (5,648) (0.2) (6,525) (0.2) Other expense, net (663) — (1,479) — Income before provision for income taxes 161,284 4.4 46,493 1.4 Income tax expense 42,868 1.2 16,230 0.5 Net income $ 118,416 3.2 % $ 30,263 0.9 % Revenues increased $295.6 million, or 8.8%, to $3.66 billion for the year ended December 31, 2025 from $3.36 billion for the year ended December 31, 2024.
We believe legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand, particularly in connection with electric power infrastructure, transportation and clean energy spending. We believe legislative actions are likely to provide greater long-term opportunity in both of our reporting segments.
We believe legislative actions aimed at supporting infrastructure improvements in the United States may positively impact long-term demand, and opportunity in both of our reporting segments, particularly in connection with electric power infrastructure, expansion of domestic manufacturing, and transportation spending. However, we may experience unanticipated volatility associated with policy changes and tariffs.
We use, and we believe investors benefit from, the presentation of EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations.
We use, and we believe investors benefit from, the presentation of EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations. 36 TABLE OF CONTENTS Using EBITDA as a performance measure has material limitations as compared to net income, or other financial measures as defined under GAAP, as it excludes certain recurring items, which may be meaningful to investors.
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.
Interest expense was $5.6 million for the year ended December 31, 2025 compared to $6.5 million for the year ended December 31, 2024. This decrease was primarily attributable to lower interest rates during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
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.
During the years ended December 31, 2025 and 2024, we used net cash of $86.2 million and $67.2 million, respectively, in investing activities. The $86.2 million of cash used in investing activities in the year ended December 31, 2025 consisted of $94.4 million for capital expenditures, partially offset by $8.2 million of proceeds from the sale of equipment.
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%.
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, 2025 2024 (dollars in thousands) Amount Percent Amount Percent Contract revenues: Transmission & Distribution $ 2,002,440 54.7 % $ 1,880,501 55.9 % Commercial & Industrial 1,655,449 45.3 1,481,789 44.1 Total $ 3,657,889 100.0 $ 3,362,290 100.0 Operating income: Transmission & Distribution $ 157,610 7.9 $ 69,374 3.7 Commercial & Industrial 97,207 5.9 48,041 3.2 Total 254,817 7.0 117,415 3.5 Corporate (87,945) (2.4) (63,333) (1.9) Consolidated $ 166,872 4.6 % $ 54,082 1.6 % 35 TABLE OF CONTENTS Transmission & Distribution Revenues for our T&D segment for the year ended December 31, 2025 were $2.00 billion compared to $1.88 billion for the year ended December 31, 2024, an increase of $121.9 million, or 6.5%.
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 year-over-year increase was primarily due to an increase in employee incentive compensation costs and an increase in employee-related expenses to support future growth. These increases were partially offset by $10.3 million of contingent compensation expense related to a prior acquisition and recognized during the year ended December 31, 2024, which did not recur.
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.
The $239.5 million year-over-year increase in cash provided by operating activities was primarily due to favorable net changes in operating assets and liabilities of $151.5 million, and an increase in net income of $88.2 million.
Gross profit decreased $74.1 million, or 20.3%, to $290.3 million for year ended December 31, 2024 from $364.4 million for the year ended December 31, 2023, due to lower margins and lower revenues. SG&A was $238.2 million for the year ended December 31, 2024, an increase of $3.6 million from $234.6 million for the year ended December 31, 2023.
Gross profit increased $133.5 million, or 46.0%, to $423.8 million for year ended December 31, 2025 from $290.3 million for the year ended December 31, 2024, due to higher margins and revenues. SG&A was $256.4 million for the year ended December 31, 2025, an increase of $18.2 million from $238.2 million for the year ended December 31, 2024.
In addition, significant estimate changes in gross profit positively impacted gross margin by 1.0% and mainly related to better-than-anticipated productivity, favorable change orders and favorable job closeouts. Gross margin also benefited by approximately 0.2% from favorable joint venture results during the year ended December 31, 2024.
In addition, significant estimate changes in gross profit positively impacted gross margin by 1.0% and mainly related to better-than-anticipated productivity, favorable change orders and favorable job closeouts. During the year ended December 31, 2024, gross margin was primarily impacted by negative significant estimate changes in our estimated gross profit on certain T&D clean energy projects and a C&I project.

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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 changeAny 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.
Biggest changeAny borrowings under our Facility are based upon interest rates that will vary depending upon the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, Term CORRA, and Term SOFR Reference Rate, each as defined in the Credit Agreement.
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.
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, 2025, we were not party to any derivative instruments.
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.
We did not use any material derivative financial instruments during the years ended December 31, 2025, 2024 or 2023, 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.
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 as of December 31, 2025, 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 $0.5 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.
If market rates of interest on all our revolving debt, which is subject to variable rates as of December 31, 2025, 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 $0.5 million annually.
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.
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, 2025, we had $47.4 million in borrowings under our Facility.

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