MYRG
MYR Group
Summary
What they do:
Specialized electrical construction contractor building high-voltage transmission lines, substations, and commercial/industrial electrical systems — the company that physically wires data centers and connects them to the power grid.
Why they matter:
Data center buildout requires massive electrical construction — both inside the facility (commercial/industrial segment) and connecting it to the grid (transmission & distribution segment) — and MYR is one of the few contractors with the specialized high-voltage expertise to do both.
Recent performance:
Record FY2025 revenue of $3.66B, Q4 revenue $973.5M (+17.3% YoY) with record net income of $37M. Stock at ~$329, up from $107 52-week low.
Our Verdict
Specialized electrical contractor riding the data center and grid modernization supercycle — record backlog and accelerating revenue growth confirm structural demand, but elevated valuation after a 3x run prices in sustained execution on a labor-constrained business model.
Structural trends
Structural
66
/ 100
Moat
5/10
Utility electrical
AI Exp.AI Exposure
Embedded~20% AI
Play Type
EmergingAI Growth
~25-30%
Rel. Value
69
ATTRACTIVEPriceLIVE
$322.07
+0.79%
Live via Yahoo Finance · refreshes every 5 min
Market Cap
$5.0B
P/E Ratio
42.7
P/S Ratio
1.4x
52W High
$323.82
52W Low
$106.52
52W Chg
202.4%
Beta
1.06
When a hyperscaler breaks ground on a new data center campus, someone has to physically wire the building — pulling miles of copper and fiber through conduit, installing switchgear and transformers, connecting the facility to the high-voltage transmission grid. MYR Group is one of the largest specialty electrical contractors in the United States doing exactly this work, operating across two segments that together cover the full electrical chain from grid to rack.
The Transmission & Distribution segment (~55% of revenue) builds and maintains high-voltage transmission lines, substations, and distribution networks for utilities. This is the most specialized and highest-margin work MYR performs — live-line construction at 115kV to 500kV requires years of specialized training, safety certification, and crews willing to work at extreme heights on energized lines. The Commercial & Industrial segment (~45% of revenue) handles electrical construction inside buildings — data centers, manufacturing facilities, hospitals, and commercial buildings. Data center electrical work has become an increasingly large share of this segment as hyperscaler and colocation buildout accelerates.
MYR operates from over 100 locations across the US and Canada with approximately 10,000 employees. The company was founded in 1891 and is headquartered in Thornton, Colorado. Revenue has grown from $2.6B in FY2023 to $3.66B in FY2025, driven by both organic growth and the structural tailwind of grid modernization and data center construction. Backlog at year-end 2025 stood at $2.82B, up 9.3% year-over-year, providing roughly 9 months of revenue visibility.
The business model is project-based with contracts typically ranging from $1M to $100M+. Revenue is recognized on a percentage-of-completion basis. Gross margins run 10-13% on a consolidated basis (higher in T&D, lower in C&I), with operating margins in the 4-5% range — typical for specialty construction. Free cash flow generation is strong relative to earnings because the business is asset-light compared to heavy construction.
Supply Chain Dependencies
The Catch
MYRG is fundamentally a services business with no proprietary technology, no recurring revenue, and thin operating margins (4-5%). The stock trades at 42x trailing earnings — a valuation typically reserved for asset-light software or high-moat industrials, not project-based construction companies. If electrician wage inflation accelerates to 10%+ or a major project goes sideways (as happens periodically in construction), the margin impact is immediate and the stock has no valuation floor from IP or recurring contracts. The dual risk is cyclical: data center construction and utility transmission spending could both moderate simultaneously if macro conditions tighten.
If They Win
If data center construction and grid modernization spending sustain at current growth rates through 2028, and MYR successfully shifts its C&I mix toward higher-margin data center work while maintaining T&D discipline, the company becomes the electrician of the AI economy — wiring every hyperscaler campus and connecting every new power source to the grid. Revenue compounds to $5B+ by 2028, operating margins expand toward 6-7% as data center mix improves, and the stock re-rates as the market recognizes MYR isn't a cyclical contractor but a structural beneficiary of the multi-decade electrification trend. At that trajectory, the current $5B market cap looks modest against a $300M+ annual earnings power scenario.
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Not financial advice. All scores generated via AI algorithms using public data.