MYR Group Inc. MYRG delivered a strong second-quarter 2026 performance, reporting record net income on higher revenues, improved project execution and stronger margins across both its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) businesses.
MYR Group’s earnings momentum has remained strong, with net income increasing sequentially over the past eight quarters as shown in the chart below. Momentum has gained this year, with net income reaching $46.8 million in the first quarter of 2026 before climbing to the record $49.9 million in the second quarter.
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The second-quarter 2026 net income figure marked an 88.4% surge from the year-ago quarter. Earnings per share were $3.17 in the second quarter of 2026 compared with $1.70 in the year-ago quarter.
MYRG’s revenues increased 20.1% year over year to a record $1.08 billion, reflecting continued strength in its core markets, ongoing investment in electrical infrastructure and sustained customer demand across its business. C&I revenues were up 41.5% year over year, supported by higher revenues on fixed-price contracts. T&D revenues rose 3.5%, reflecting increased activity on time-and-equipment and unit-price contracts, partly offset by lower revenues on fixed-price contracts.
Despite an 18% increase in costs, gross profit climbed 38% to $142.7 million. Gross margin expanded 170 basis points year over year to 13.2%, benefiting from better-than-expected productivity, favorable project closeouts and increased scope on certain projects. These gains were partially offset by higher costs related to project inefficiencies.
Selling, general and administrative expenses increased 18%, primarily due to higher employee incentive compensation and employee-related costs associated with supporting future growth. Nevertheless, the stronger gross profit more than offset the increase in operating expenses, with operating income surging 71% to $67.9 million. Operating margin expanded to 6.3% from 4.4% in the year-ago quarter.
Performance improved across both operating segments. C&I operating income more than doubled to $47.3 million from $22 million, while its operating margin expanded to 8.5% from 5.6%. T&D operating income increased to $49.5 million from $40.5 million, with operating margin improving to 9.4% from 8%.
The company’s record $3.16 billion backlog at the end of the second quarter provides solid visibility into future revenue growth. MYRG continues to benefit from secular investment in transmission and distribution infrastructure, grid modernization, data centers, manufacturing reshoring, transportation and clean energy. The July acquisitions of Valley Electric and Comet Electric are also expected to strengthen the company’s C&I capabilities and expand its geographic reach.
However, project timing, execution challenges and cost pressures remain potential headwinds. Still, MYRG’s accelerating revenue growth, expanding margins, record backlog and favorable end-market trends support continued momentum in both its top and bottom lines.
Peer Performance
Quanta Services Inc. PWR reported adjusted net income attributable to common stock of $646 million in the second quarter of 2026, 73% higher compared with $373.6 million a year ago. Adjusted earnings increased 71% to $4.24 per share. The improved results reflected solid execution across both of Quanta’s operating segments. Revenues increased 41.1% year over year to $9.56 billion
MasTec Inc. MTZ reported adjusted earnings of $2.22 per share in the second quarter of 2026. The figure increased 48.8% from $1.49 in the year-ago quarter. Adjusted net income attributable to MasTec was $175 million compared with $117 million in the second quarter of 2025. MasTec delivered a strong quarterly performance, supported by broad-based growth across communications, clean energy, power delivery and pipeline infrastructure markets. Higher project activity, particularly in energy infrastructure, along with improved execution and productivity, boosted results.
MYRG’s Price Performance, Valuation & Estimates
MYR Group shares have gained 55.8% in the past year, outperforming the industry's 76.4% fall.
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MYRG is currently trading at a forward 12-month P/E of 21.70X, a premium compared with the industry’s 18.39X.
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The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 65.1%, while the 2027 estimate implies growth of around 12.9%.
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Earnings estimates for both years have moved up over the past 60 days.
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MYR Group stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).