MYR Group Inc. shares are gaining substantial traction, propelled by significant institutional accumulation and a record-breaking quarterly performance. The current investment thesis revolves around robust institutional confidence and strategic contract awards that promise sustained growth.
Record-Setting Quarterly Performance
MYR delivered exceptional financial results for the second quarter of 2025, providing a fundamental catalyst for the recent rally. The company posted a record net income of $26.5 million, which translated to $1.70 per diluted share. This figure substantially outperformed analyst expectations, which had been set at $1.52 per share. Revenue reached $900.3 million, supported by an EBITDA of $55.6 million. In a notable demonstration of improved operational efficiency, the gross margin expanded year-over-year from 4.9% to 11.5%. Future revenue visibility is secured by a substantial backlog of $2.64 billion.
Major Contract Secures Long-Term Revenue Stream
Adding to its strong operational outlook, MYR announced a significant five-year master service agreement with Xcel Energy, valued at over $500 million through 2029. Awarded to a MYR subsidiary, this Design-Build Electric Distribution contract encompasses comprehensive services, from initial planning to construction execution, across multiple utility service territories. This agreement provides a predictable and long-term revenue source, underpinning the company’s growth strategy for the coming years.
Overwhelming Institutional Accumulation
The confidence in MYR’s trajectory is most evident in the aggressive buying from major financial institutions. Institutional investors now control 88.90% of all outstanding shares, representing a powerful vote of confidence.
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Specific institutional activity highlights this trend:
* Intech Investment Management increased its stake by 24.5% in Q1, building a position of 18,540 shares worth approximately $2.1 million.
* UBS Asset Management was even more assertive, growing its holdings by a massive 214.6%. The firm now owns 302,549 shares with a market value of around $34.2 million.
Shareholder-Friendly Initiatives
MYR’s board is reinforcing its commitment to delivering shareholder value. On July 30, 2025, directors approved a new $75 million stock repurchase program, signaling a belief in the company’s intrinsic value. Furthermore, MYR is enhancing its engagement with the investment community. CEO Rick Swartz and CFO Kelly Huntington are scheduled to meet with institutional investors at specialized conferences on September 18 and 19.
Key Financial and Operational Data:
* Q2 2025 Revenue: $900.3 million
* Q2 2025 Net Income: $26.5 million ($1.70 per share)
* Total Backlog: $2.64 billion
* Xcel Energy Contract Value: Over $500 million (5-year term)
* Institutional Ownership: 88.90%
* Authorized Share Repurchases: $75 million
The powerful combination of record financials, strategic long-term contracts, and overwhelming institutional support paints a compelling picture for MYR’s future. The company is delivering on its promises, and the market’s largest players are taking notice.
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