MYR Group Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Contract revenues for the third quarter were $888.0 million, down 5.5% from $939.5 million in 2023. For the nine months, revenues decreased to $2.53 billion from $2.64 billion, reflecting a 4.1% decline. The Transmission and Distribution (T&D) segment experienced a significant drop in revenues, falling to $481.9 million for the third quarter, a decrease of 12.2% year-over-year, while the Commercial and Industrial (C&I) segment saw a slight increase to $406.2 million.
Gross profit for the third quarter was $77.3 million, down 16.3% from $92.4 million in 2023, with gross margins decreasing to 8.7% from 9.8%. For the nine-month period, gross profit fell to $204.4 million from $266.9 million, resulting in a gross margin decline to 8.1% from 10.1%. The decrease in profitability was attributed to significant changes in estimated gross profit on certain projects, particularly in clean energy initiatives, which were impacted by unfavorable weather and labor inefficiencies.
Net income for the third quarter was $10.6 million, a decline from $21.5 million in 2023, while for the nine months, net income dropped to $14.3 million from $66.9 million. Basic earnings per share for the third quarter were $0.65, down from $1.29, and for the nine months, it decreased to $0.86 from $4.01.
The company’s total assets increased to $1.59 billion as of September 30, 2024, from $1.58 billion at the end of 2023, while total liabilities rose to $1.00 billion from $927.5 million. Shareholders’ equity decreased to $588.5 million from $651.2 million. Cash and cash equivalents significantly declined to $7.6 million from $24.9 million.
MYR Group's operational challenges included increased costs in labor, materials, and insurance, alongside supply chain disruptions. The company anticipates continued bidding activity for large transmission projects, although significant construction is not expected to commence until 2025. The C&I segment is expected to benefit from ongoing public infrastructure expansion in the U.S. and Canada.
The company also repurchased 643,549 shares at a weighted average price of $116.54 during the nine months ended September 30, 2024, as part of a $75 million share repurchase program initiated in May 2024. The company maintains a strong balance sheet with a $490 million revolving credit facility to support growth and acquisitions.
About MYR GROUP INC.
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