MYR Group Inc., a holding company specializing in electrical contracting services for the utility and commercial sectors in the U.S. and Canada, reported its first-quarter financial results for 2025. The company’s revenues reached $834 million, a $18 million increase or 2.2% compared to the same period in 2024.

The Transmission and Distribution (T&D) segment reported revenues of $462 million, a decrease of 5.8% from the prior year, primarily due to a $44 million decline in transmission revenues offset by a $16 million rise in distribution revenues. The Commercial and Industrial (C&I) segment, however, saw revenues rise by 14.4% to $372 million, driven by increased activity in fixed-price contracts and time & materials contracts.

MYR Group’s gross margin improved to 11.6%, up from 10.6% in the prior year. This increase in gross margin stemmed from a higher percentage of projects achieving better contractual margins, partly from more projects nearing completion and favorable change orders. However, the margin increases were partially offset by higher costs related to labor and project inefficiencies.

Operating income margin for the T&D segment was 7.8%, increasing from 6.1% in the prior year. This rise was attributed to fewer inefficiencies compared to the previous period. Conversely, the C&I segment saw its operating income margin grow to 4.7% from 3.5%. The C&I margin improvement was due to a larger proportion of projects progressing at higher contractual margins and better-than-anticipated productivity.

Total selling, general and administrative expenses rose to $62.5 million, a slight increase of $300,000 year-over-year, largely due to increased employee-related expenses. Interest expense also climbed to $1.4 million, up from $1.1 million a year earlier, driven by higher average outstanding debt balances.

Net income for the first quarter was reported at $23 million, compared to $19 million from the first quarter of 2024. This resulted in earnings per diluted share of $1.45, an increase of 29% from the previous year. EBITDA was $50 million, up from $40 million in the comparable quarter of the previous year.

As of March 31, 2025, MYR Group’s total backlog was $2.64 billion, a 9% increase from $2.43 billion a year prior. The backlog included $873 million for the T&D segment and $1.77 billion for the C&I segment. Operating cash flow for the first quarter was $83 million, significantly higher than the $8 million reported in the same period last year, mainly due to a decrease in accounts receivable.

Free cash flow for the period improved to $70 million, up from a negative $18 million for the same period in 2024. The company repurchased 639,000 shares at an average price of $117.33, completing its current share repurchase program. As of March 31, 2025, the company had approximately $230 million in working capital, $87 million in funded debt, and $379 million available under its credit facility.