MYRG

Research · Sep 3, 2026

[MYRG] MYR Group Thesis 2026: Grid + Data Center Supercycle Drives Margin Expansion

MYR Group FY2025 operating income surged to ~$167M (+208% YoY) at ~4.6% OI margin as electrical contractor benefited from dual tailwinds: utility T&D capex acceleration (~$2.1B T&D revenue) and hyperscaler data center electrical buildout (~42% of C&I backlog, ~$1.55B segment). Backlog reached ~$3.3B — approximately 11 months of forward revenue. FY2026 thesis: sustained AI infrastructure investment (Microsoft/Google/Amazon multi-year capex commitments) maintains C&I data center mix at 40-45%; FERC Order 1977 and IIJA funding sustains T&D capex cycle; execution discipline on fixed-price C&I contracts (after FY2024 cost overrun episode) maintains OI margin at 4-5%+ range.