MYR Group Inc

MYR Group reported second-quarter revenue of $1.08 billion, up 20.1% year on year and 8.3% above analyst estimates, while adjusted earnings per share of $3.17 beat expectations by 19.9%. Operating margin improved to 6.3% from 4.4% a year earlier, driven by strong execution and favorable project closeouts in both transmission and distribution and commercial and industrial segments. The commercial and industrial segment posted its highest-ever quarterly revenue, fueled by data center and advanced manufacturing activity, and the company secured significant new transmission awards including two large projects for Xcel Energy. Backlog reached a record $3.16 billion, up 19.7% year on year, supported by a mix of new wins and repeat business from long-term clients. Management expects the recently acquired Valley Electric and Comet Electric to contribute approximately $250 million in revenue for the remainder of the year, with near-term earnings impact muted by amortization but longer-term accretion anticipated.

MYR Group has drawn fresh attention after reporting record second quarter 2026 revenue, earnings, and backlog, along with the acquisitions of Valley Electric and Comet Electric that broaden its commercial and industrial footprint. The stock last closed at $333.22 against a narrative fair value of $433, implying a 23% undervaluation. Despite strong results, the share price has cooled, down 28.05% over the past 30 days, though it still shows a 77.77% one-year total shareholder return and a 238.95% five-year total shareholder return. A simpler earnings-multiple view using the current P/E of 31.4 times, slightly above the 30.7 times fair ratio and below the 34.9 times US Construction average, leaves a narrower margin of safety. Sustained momentum in electrification spanning grid upgrades, data center buildouts, and transportation is expected to drive strong demand for MYR Group's infrastructure services.

MYR Group has announced plans to actively pursue acquisitions, signaling a shift in corporate activity beyond routine earnings updates. The electrical construction services company, which works on transmission, distribution, and commercial and industrial projects across North America, indicated on its recent earnings call that it aims to use its borrowing capacity and cash flows to support these transactions. Management pointed to remaining borrowing capacity under the credit facility and cash flow from operations as potential funding sources for deals and share repurchases. The move comes as grid reliability, renewable integration, and infrastructure resilience remain key themes for utilities and public agencies, and the company sees room to add new geographies, customer relationships, or niche services. Investors will be watching how any future transactions affect balance sheet flexibility, project risk, and long-term growth plans, particularly whether targets would deepen MYR Group's role in grid upgrades, data centers, or other complex electrical work without stretching execution capacity.

MYR Group shares reached a new 52-week high of $491.61, driven by consistent earnings beats and a Zacks Rank #1 (Strong Buy). The stock has surged 123% year-to-date, far outpacing the Zacks Utilities sector's 8.2% gain. In its latest quarter, MYR reported earnings of $2.99 per share, well above the $2.09 consensus estimate. Analysts expect full-year earnings of $11.43 per share, a 51.79% increase, with further growth projected for the next fiscal year. The company holds a VGM Score of B, with top marks in Growth and Momentum, though its valuation multiples trade at a premium to industry averages.

Atkore is flagged as a sell due to declining sales and shrinking free cash flow margins, while MYR Group and Woodward are highlighted for their strong cash generation and shareholder returns. Atkore's sales fell 7.8% annually over the last two years, and its free cash flow margin dropped by 9.2 percentage points over five years to 5%. In contrast, MYR Group expanded its free cash flow margin by 4.5 percentage points to 6% and boosted earnings per share through buybacks. Woodward posted a 9.7% free cash flow margin, with 13% annual revenue growth over five years and improved operating efficiency.

StockStory identifies MYR Group as a surging stock to target this week while labeling Albany and Old National Bank as risky. MYR Group, trading near its 52-week high at $484.75 per share, posted annual earnings per share growth of 32.6% over the last two years, outpacing revenue gains, and its free cash flow margin expanded by 4.5 percentage points over five years. Albany, priced at $72.00, saw sales stagnate and its free cash flow margin shrink by 5.2 percentage points amid rising capital intensity. Old National Bank, at $25.01 per share, recorded a net interest margin of 3.5% and annual earnings per share growth of 5.8% that lagged revenue growth over five years.

Prospect Capital Corporation has agreed to sell its portfolio company Valley Electric Company to specialty contractor MYR Group for approximately $328 million. The transaction is expected to close around July 1, 2026, and Prospect anticipates net exit proceeds of roughly $280 million after adjustments and earn-out payments. Combined with prior returns from interest, dividends, and other cash flows since the original 2012 investment, the total outcome represents a 20.4% annualized return and nearly five times the original capital invested. Valley Electric, founded in 1982, provides electrical contracting services for critical infrastructure and saw its revenues grow by 289% during Prospect's 14-year ownership.