Slide 1: Investor Presentation Q2 August 2024
1 INVESTOR PRESENTATION Q 2 | A u g u s t 2 0 2 4 | N A S D A Q : M Y R G
Slide 2: Safe Harbor Notice: Forward-Looking Statements
2 Various statements in this announcement, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. The forward-looking statements may include projections and estimates concerning the timing and suc
Slide 3: Quality Solutions for Increased Electrification
3 QUALITY SOLUTIONS FOR INCREASED ELECTRIFICATION 65+ OFFICE LOCATIONS MYR Group Inc. is a holding company of subsidiaries that have delivered some of the largest and most notable electrical infrastructure and commercial and industrial projects throughout the United States and Canada, since 1891. MY
Slide 4: Top 5 U.S. Specialty Electrical Contractors; Revenue Growth
4 $3.59B 06/30/2024 LTM $2.07B 2019 $2.25B 2020 $2.50B 2021 $3.64B 2023 RANKED AMONG TOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS 28 YEARS IN A ROW $3.01B 2022 CAGR 13.0%
Slide 5: Market and business outlook
5 • T&D work activity primarily consists of small to medium-sized projects, with some larger transmission, High Voltage Direct Current (HVDC) projects. We continue to execute routine maintenance work under long-term Master Services Agreements (MSAs). Strong, long-term drivers will continue to increa
Slide 6: Electrical Construction Project Delivery
6 ELECTRICAL CONSTRUCTION PROJECT DELIVERY DEPTH & BREADTH OF EXPERTISE Industry leader and trusted partner Strong, long-standing customer alliances Maintain one of the largest, specialized fleets Experience with small to large, fast-track projects Deliver highest quality services with skilled exper
Slide 7: Business Segment Update: Transmission & Distribution (T&D)
7 • T&D June 30, 2024 LTM revenue of $2.09B • $831M T&D segment backlog as of June 30, 2024* • Strong, long-standing relationships with a diverse customer base where approx. 50% of business is performed under Master Service Agreements • Acquired the Powerline Plus Companies in January 2022 • 14.5% r
Slide 8: T&D Market Outlook: Strong Long-Term Drivers
8Source: The C Three Group, North American Electric Distribution Market Forecast, October 2023 “Overall, distribution spend increased 7% in 2022 over 2021. Investor-owned utility spend increased by 9.1%.” U.S. and Canadian Electric Distribution Actual and Forecasted Capital Expenditures STRONG LONG-
Slide 9: Business Segment Update: Commercial & Industrial (C&I)
9 • C&I June 30, 2024 LTM revenue of $1.50 billion • Strong $1.71B C&I segment backlog as of June 30, 2024 • Growth in our core markets is driven by increasing investments in data centers, transportation, clean energy, and healthcare, as well as reshoring of manufacturing, and we remain well diversi
Slide 10: C&I Market Outlook
10 Healthcare Data Centers Airport Projects Transportation Clean Energy & EV Charging E-Commerce Water/Wastewater Facilities Industrial Facilities MYR GROUP CORE C&I MARKETS ACTIVE MARKET DRIVERS C&I MARKET OUTLOOK • Infrastructure Investment and Jobs Act funding is expected to continue driving grow
Slide 11: Data Center Market Expansion
11 MARKET OPPORTUNITIES FOR BOTH T&D AND C&I DATA CENTER MARKET EXPANSION AI Driven Demand Increased Cloud Services Greater Data Storage Needs Deceleration of Power Efficiency Gains Crypto Mining Operations DATA CENTER DRIVERS DATA CENTERS DRIVING INCREMENTAL INFRASTRUCTURE INVESTMENT C Three’s 2023
Slide 12: Clean Energy Generation Mix
12 MARKET OPPORTUNITIES FOR BOTH T&D AND C&I CLEAN ENERGY GENERATION MIX Federal Tax Credits Renewable Portfolio Standards Carbon Policy State Tax Incentives Clean Power Portfolios Customer Demand for Clean Power CLEAN ENERGY DRIVERS UTILITY-SCALE SOLAR SOURCE: SEIA/Wood Mackenzie Power & Renewables
Slide 13: Clean Energy Transformation Partner
13 We don’t just create connections that empower people – we create connections that help our partners achieve their energy goals. CLEAN ENERGY TRANSFORMATION PARTNER
Slide 14: Investment Highlights
14 STRONG MARKET COUPLED WITH OUR COMPETITIVE EDGE POSITIONS MYR GROUP FOR CONTINUED GROWTH Healthy organic and acquisitive growth Proven execution of corporate strategy Strong financial position Centralized operations for greater efficiency and cross-collaboration Strong presence in key markets wit
Slide 15: Building a Sustainable Future with Corporate Responsibility
15 BUILDING A SUSTAINABLE FUTURE WITH CORPORATE RESPONSIBILITY VIEW REPORT Policy & Guidance Established corporate policies Promote honest and ethical conduct Develop employee awareness and compliance Equity & Inclusion 38% racially/ethnically/gender diverse Board of Directors Established Veteran Em
Slide 16: Delivering Strong Returns
16 DELIVERING STRONG RETURNS DIVIDEND ADJUSTED STOCK RETURN MYRG - CAGR 32.98% EME - CAGR 39.81% PWR - CAGR 48.07% MTZ - CAGR 19.15% DY - CAGR 22.65% -200.0% 0.0% 200.0% 400.0% 600.0% 800.0% 1000.0% Dividend Adjusted Stock Return (01/02/2019 - 06/28/2024) MYRG Div. Adj. Return EME Div. Adj. Return P
Slide 17: Q2 2024 Results and Financial Snapshot
17 Q2 2024 RESULTS ($15.3M) Net Income (Loss) or ($0.91) Per Diluted Share $2.54B Backlog $828.9M Revenue Our second quarter results were negatively impacted within our T&D segment by clean energy projects that are scheduled to reach mechanical completion by the end of the year and by one project wi
Slide 18: CAPEX, ROIC and Liquidity
18 $57.8 $44.4 $52.4 $77.1 $84.7 $89.0 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20 $40 $60 $80 $100 2019 2020 2021 2022 2023 06/30/2024 LTM M il li o n s CAPEX Investment CAPEX Spend CAPEX % of Rev 32.5% 14.4% 13.0% 10.9% 5.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% EME MYRG DY PWR MTZ 3-Year Averag
Slide 19: Financial Performance
19 $2,071 $2,247 $2,498 $3,009 $3,644 $3,588 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2019 2020 2021 2022 2023 06/30/2024 LTM M ill io n s Revenue by Work Type Trans. Dist. C&I 13.0% CAGR $1,499 $1,649 $1,789 $2,502 $2,512 $2,544 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 4 4 4 4 4 2
Slide 20: Executive Leadership
20 EXECUTIVE LEADERSHIP Rick Swartz, CEO MYRG: 41 years Industry: 41 years 19 YEARS EXECUTIVES AVERAGE: WITH MYR GROUP Effective February 24, 2023 MYR Group Inc. has a strong team of experienced leaders that make up our executive team and Board of Directors. We believe diversity of our leadership is
Slide 21: Growth Strategy and Prudent Capital Returns
21 ORGANIC GROWTH Expand in new and existing markets that align with core capabilities STRATEGIC ACQUISITIONS Evaluate opportunities to expand and hone business expertise PRUDENT CAPITAL RETURNS Opportunistically repurchase shares Announced $75M share repurchase program on May 6, 2024 As of June 30,
Slide 22: EBITDA and Free Cash Flow Reconciliation
22 Note: LTM diluted weighted average shares outstanding were determined by adding the average shares reported for the last four quarters and dividing by four. EBITDA is not recognized under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to net
Slide 23: ROIC Calculation and Disclaimer
23NOTE: Images used throughout this presentation may have been taken before COVID. Net Income (LTM) [A] +[(Net Interest Expense + Amortization of Intangibles)* (1-Effective Tax Rate)] ÷ [Book Value (Total Stockholders' Equity [B]) + Net Funded Debt] @ beginning and ending period average = Return on