• Revenue: $888 million, a decrease of 5.5% compared to the same period last year.

• T&D Revenue: $482 million, a decrease of 12% compared to the same period last year.

• C&I Revenue: $406 million, an increase of 4% compared to the same period last year.

• Gross Margin: 8.7%, down from 9.8% in the same period last year.

• Net Income: $11 million, compared to $22 million for the same period last year.

• Net Income per Diluted Share: $0.65, compared to $1.28 for the same period last year.

• EBITDA: $37 million, compared to $47 million for the same period last year.

• Total Backlog: $2.6 billion, 1% lower than a year ago, with a 2% increase from the prior quarter.

• Operating Cash Flow: $36 million, compared to $13 million for the same period last year.

• Free Cash Flow: Positive $18 million, compared to negative $10 million for the same period last year.

• SG&A Expenses: $58 million, a decrease of $2 million compared to the same period last year.

• Effective Tax Rate: 42.5%, compared to 30.3% for the same period last year.

• Share Repurchase: 526,000 shares repurchased at an average price of $111.65 during the quarter.

• Working Capital: Approximately $269 million as of September 30, 2024.

• Funded Debt: $93 million as of September 30, 2024.

• Borrowing Availability: $376 million under the credit facility as of September 30, 2024.

• Warning! GuruFocus has detected 8 Warning Sign with THG.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MYR Group Inc (NASDAQ:MYRG) reported strong bidding activity and opportunities for long-term growth, particularly in the transmission and distribution (T&D) and commercial and industrial (C&I) segments.

• The C&I segment saw a 4% increase in revenues compared to the same period last year, driven by fixed price contracts and T&D contracts.

• Operating cash flow for the third quarter of 2024 was $36 million, a significant increase from $13 million in the same period last year.

• The company repurchased 526,000 shares during the quarter, reflecting a commitment to returning value to shareholders.

• MYR Group Inc (NASDAQ:MYRG) maintains a strong balance sheet with $376 million in borrowing availability under its credit facility, supporting future growth and acquisitions.

Negative Points

• Third quarter 2024 revenues decreased by 5.5% compared to the same period last year, with T&D revenues down by 12%.

• Gross margin decreased to 8.7% from 9.8% in the same period last year, primarily due to unfavorable impacts from certain clean energy projects.

• Operating income margin for the T&D segment fell to 3.6% from 6.6% last year, affected by losses on clean energy projects due to weather conditions and project inefficiencies.

• Net income for the third quarter of 2024 was $11 million, down from $22 million in the same period last year, with diluted earnings per share dropping to $0.65 from $1.28.

• The effective tax rate increased to 42.5% from 30.3% last year, primarily due to higher permanent difference items and higher US taxes on Canadian income.