myrg-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-08325

_____________________________________________________________

MYR GROUP INC.

(Exact name of registrant as specified in its charter)

Delaware

36-3158643

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer Identification No.)

12121 Grant Street,

Suite 610

Thornton,

80241

(Address of principal executive offices)

(Zip Code)

(303) 286-8000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

_____________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	MYRG	The Nasdaq Stock Market, LLC
		(Nasdaq Global Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of April 24, 2026, there were 15,571,036 outstanding shares of the registrant’s $0.01 par value common stock.

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INDEX


		Page
	Part I—Financial Information
Item 1.	Financial Statements	2
	Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December 31, 2025	2
	Unaudited Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2026 and 2025	3
	Unaudited Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2026 and 2025	4
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31
	Part II—Other Information
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 5.	Other Information	32
Item 6.	Exhibits	33

Throughout this report, references to “MYR Group,” the “Company,” “we,” “us” and “our” refer to MYR Group Inc. and its consolidated subsidiaries, except as otherwise indicated or as the context otherwise requires.

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MYR GROUP INC.

CONSOLIDATED BALANCE SHEETS


(in thousands, except share and per share data)	March 31, 2026		December 31, 2025
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	163,192	$	150,156
Accounts receivable, net of allowances of $874 and $934, respectively	635,676		603,735
Contract assets, net of allowances of $500 and $534, respectively	224,263		241,766
Current portion of receivable for insurance claims in excess of deductibles	9,287		10,122
Refundable income taxes	1,796		—
Prepaid expenses and other current assets	51,035		54,982
Total current assets	1,085,249		1,060,761
Property and equipment, net of accumulated depreciation of $424,415 and $413,962, respectively	307,739		306,386
Operating lease right-of-use assets	50,357		42,448
Goodwill	114,474		115,266
Intangible assets, net of accumulated amortization of $40,949 and $39,967, respectively	70,737		72,476
Receivable for insurance claims in excess of deductibles	19,753		21,358
Deferred income taxes	12,519		12,723
Investment in joint ventures	3,397		3,224
Other assets	9,199		9,437
Total assets	$	1,673,424	$	1,644,079

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	4,652	$	4,554
Current portion of operating lease obligations	12,751		13,019
Current portion of finance lease obligations	799		804
Accounts payable	332,399		314,789
Contract liabilities, net	281,520		300,560
Current portion of accrued self-insurance	28,542		28,499
Accrued income taxes	33,027		15,129
Other current liabilities	133,985		117,923
Total current liabilities	827,675		795,277
Deferred income tax liabilities	49,907		50,119
Long-term debt	4,724		54,483
Accrued self-insurance	41,325		42,827
Operating lease obligations, net of current maturities	37,598		29,429
Finance lease obligations, net of current maturities	998		1,220
Other liabilities	8,378		10,301
Total liabilities	970,605		983,656
Commitments and contingencies
Shareholders’ equity:
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at March 31, 2026 and December 31, 2025	—		—
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 15,568,110 and 15,522,834 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	155		155
Additional paid-in capital	162,373		165,211
Accumulated other comprehensive loss	(9,486)		(8,183)
Retained earnings	549,777		503,240


Total shareholders’ equity	702,819		660,423
Total liabilities and shareholders’ equity	$	1,673,424	$	1,644,079

The accompanying notes are an integral part of these consolidated financial statements.

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MYR GROUP INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME


	Three months ended March 31,
(in thousands, except per share data)	2026		2025
Contract revenues	$	1,000,380	$	833,620
Contract costs	865,940		736,719
Gross profit	134,440		96,901
Selling, general and administrative expenses	69,423		62,524
Amortization of intangible assets	1,217		1,188
Gain on sale of property and equipment	(922)		(1,101)
Income from operations	64,722		34,290
Other income (expense):
Interest income	910		191
Interest expense	(659)		(1,414)
Other expense, net	(948)		(300)
Income before provision for income taxes	64,025		32,767
Income tax expense	17,225		9,459
Net income	$	46,800	$	23,308


Income per common share:
—Basic	$	3.01	$	1.46
—Diluted	$	2.99	$	1.45
Weighted average number of common shares and potential common shares outstanding:
—Basic	15,539		15,994
—Diluted	15,676		16,056

Net income	$	46,800	$	23,308
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,303)		122
Other comprehensive income (loss)	(1,303)		122
Total comprehensive income	$	45,497	$	23,430

The accompanying notes are an integral part of these consolidated financial statements.

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MYR GROUP INC.

UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY


	Preferred		Common Stock			Additional Paid-In		Accumulated Other Comprehensive		Retained
(in thousands)	Stock		Shares	Amount		Capital		Income (Loss)		Earnings		Total
Balance at December 31, 2024	$	—	16,122	$	161	$	159,133	$	(12,651)	$	453,717	$	600,360
Net income	—		—	—		—		—		23,308		23,308

Stock issued under compensation plans, net	—		58	1		(1)		—		—		—
Stock-based compensation expense	—		—	—		2,333		—		—		2,333
Shares repurchased related to tax withholding for stock-based compensation	—		(19)	(1)		(2,264)		—		(186)		(2,451)
Share repurchases under share repurchase program	—		(639)	(6)		(6,303)		—		(68,691)		(75,000)
Other comprehensive income	—		—	—		—		122		—		122
















Balance at March 31, 2025	$	—	15,522	$	155	$	152,898	$	(12,529)	$	408,148	$	548,672

Balance at December 31, 2025	$	—	15,523	$	155	$	165,211	$	(8,183)	$	503,240	$	660,423
Net income	—		—	—		—		—		46,800		46,800

Stock issued under compensation plans, net	—		70	1		(1)		—		—		—
Stock-based compensation expense	—		—	—		3,386		—		—		3,386
Shares repurchased related to tax withholding for stock-based compensation	—		(25)	(1)		(6,223)		—		(263)		(6,487)

Other comprehensive loss	—		—	—		—		(1,303)		—		(1,303)

















Balance at March 31, 2026	$	—	15,568	$	155	$	162,373	$	(9,486)	$	549,777	$	702,819

The accompanying notes are an integral part of these consolidated financial statements.

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MYR GROUP INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three months ended March 31,
(in thousands)	2026		2025
Cash flows from operating activities:
Net income	$	46,800	$	23,308
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization of property and equipment	16,546		15,005
Amortization of intangible assets	1,217		1,188
Stock-based compensation expense	3,386		2,333

Gain on sale of property and equipment	(922)		(1,101)
Other non-cash items	294		71
Changes in operating assets and liabilities:
Accounts receivable, net	(32,573)		84,015
Contract assets, net	16,885		(34,023)
Receivable for insurance claims in excess of deductibles	2,440		(305)
Other assets	2,955		9,509
Accounts payable	15,715		(7,831)
Contract liabilities, net	(18,748)		(34,932)
Accrued self-insurance	(1,451)		(1,000)
Other liabilities	32,205		27,049
Net cash flows provided by operating activities	84,749		83,286
Cash flows from investing activities:
Proceeds from sale of property and equipment	954		2,176

Purchases of property and equipment	(16,132)		(13,066)
Net cash flows used in investing activities	(15,178)		(10,890)
Cash flows from financing activities:
Borrowings under revolving lines of credit	48,003		230,695
Repayments under revolving lines of credit	(95,417)		(215,761)

Payment of principal obligations under equipment notes	(2,247)		(2,156)
Payment of principal obligations under finance leases	(198)		(299)

Repurchase of common stock	—		(75,000)

Payments related to tax withholding for stock-based compensation	(6,487)		(2,451)

Net cash flows used in financing activities	(56,346)		(64,972)
Effect of exchange rate changes on cash	(189)		8
Net increase in cash and cash equivalents	13,036		7,432
Cash and cash equivalents:
Beginning of period	150,156		3,464
End of period	$	163,192	$	10,896

The accompanying notes are an integral part of these consolidated financial statements.

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MYR GROUP INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization, Business and Basis of Presentation

Organization and Business

MYR Group Inc. (the “Company”) is a holding company of specialty electrical construction service providers conducting operations through wholly owned subsidiaries. The Company performs construction services in two business segments: Transmission and Distribution (“T&D”), and Commercial and Industrial (“C&I”). T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. T&D provides a broad range of services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. C&I provides a broad range of services, which include the design, installation, maintenance and repair of commercial and industrial wiring. Typical C&I contracts cover electrical contracting services for data centers, clean energy projects, airports, hospitals, hotels, commercial and industrial facilities, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, stadiums and electric vehicle charging infrastructure.

Basis of Presentation

Interim Consolidated Financial Information

The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income (loss), shareholders’ equity and cash flows with respect to the interim consolidated financial statements, have been included. Certain reclassifications were made to prior year amounts to conform to the current year presentation. The consolidated balance sheet as of December 31, 2025 has been derived from the audited financial statements as of that date. The results of operations and comprehensive income are not necessarily indicative of the results for the full year or the results for any future periods. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026 (the "2025 Annual Report").

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates.

The most significant estimates are related to estimates of 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 certain tax positions, estimates surrounding stock-based compensation, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition.

The Company estimates costs to complete on fixed price contracts which are determined on an individual contract basis by evaluating each project’s status as of the balance sheet date, and using our historical experience with the level of effort required to complete the underlying project. Claims and change orders are measured based on our historical experience with individual customers and similar contracts, and are evaluated by management individually. The Company includes these estimated amounts of variable consideration to the extent that it is probable there will not be a significant reversal of revenue.

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Some of the Company’s contracts may have contract terms that include variable consideration such as safety or performance bonuses or liquidated damages. The Company includes the estimated amount of variable consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative recognized revenue will not occur when the final outcome of the variable consideration is determined. In contracts in which a significant reversal may occur, the Company exercises restraint in recognizing revenue on variable consideration. The Company often enters into contracts that contain liquidated damage clauses. The Company does not include amounts associated with liquidated damage clauses until it is probable that liquidated damages will occur. These items are continually monitored by multiple levels of management throughout the reporting period.

As of March 31, 2026 and December 31, 2025, the Company had recognized revenues of $12.2 million and $23.5 million, respectively, related to large change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods.

The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the three months ended March 31, 2026, net changes in estimates pertaining to certain projects increased consolidated gross margin by 0.8%, which resulted in increases in operating income of $8.5 million, net income of $5.6 million and diluted earnings per common share of $0.36. Additional discussion on the impact of these estimate changes can be found in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Consolidated Results of Operations.”

During the three months ended March 31, 2025, net changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.1%, which resulted in decreases in operating income of $8.7 million, net income of $6.3 million and diluted earnings per common share of $0.39.

Foreign Currency

The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and intercompany loans that are not deemed long-term investment accounts are recorded in the “other income, net” line on the Company’s consolidated statements of operations. Foreign currency losses and gains, recorded in other income, net, for the three months ended March 31, 2026 and 2025 were $1.0 million and $0.3 million, respectively. Foreign currency translation gains and losses, arising from intercompany loans that are deemed long-term investment accounts, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income.

Recent Accounting Pronouncements

Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or will have minimal impact on its financial statements when adopted.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which introduces a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions under Topic 606. The practical expedient allows entities to assume that current conditions as of the balance sheet date would not change for the remaining life of the asset when evaluating expected credit losses. This standard is effective for the Company for the annual and interim periods beginning after December 15, 2025, with early adoption permitted, and should be applied prospectively. The Company elected to adopt this practical expedient on January 1, 2026, on a prospective basis. This election did not have a material impact on our consolidated financial statements and related disclosures.

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Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires the disaggregation of certain expenses in the notes of the financials, to provide enhanced transparency into the expense captions presented on the face of the income statement. The guidance will require disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The update is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments in this pronouncement should be applied either (i) prospectively to financial statements issued for reporting periods after the effective date or (ii) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which is intended to clarify the applicability of interim disclosure requirements, provides additional guidance on the disclosures required in interim reporting periods, and introduces a principle requiring entities to disclose events occurring since the end of the most recent annual reporting period that have a material impact on the entity. The update is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments in this pronouncement can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures.

2. Contract Assets and Liabilities

Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms. These contracts frequently include retention provisions contained in each contract. Retainage amounts are reflected in contract assets or contract liabilities depending on the net contract position of the particular contract.

The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.5 million as of March 31, 2026 and December 31, 2025, respectively.

Contract assets consisted of the following:


(in thousands)	March 31, 2026		December 31, 2025
Unbilled revenue, net	$	152,621	$	160,543
Contract retainages, net	71,642		81,223
Contract assets, net	$	224,263	$	241,766

The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue, an accrual for contracts in a loss provision and retainage receivables.

Contract liabilities consisted of the following:


(in thousands)	March 31, 2026		December 31, 2025
Deferred revenue	$	371,267	$	386,071
Accrued loss provision	15,871		13,084
Less, retainage receivables	(105,618)		(98,595)
Contract liabilities, net	$	281,520	$	300,560

SEC Form 10-Q filed by MYR Group Inc.