Myr Group, Inc. · NASDAQ:MYRG
Myr — Q3 2024 Earnings Presentation
23 slides from Myr's earnings presentation, Oct 31, 2024
Slide 1: Investor Presentation Q3 2024
INVESTOR PRESENTATION Q3 | November 2024 | NASDAQ: MYRG 1
Slide 2: Safe Harbor Notice: Forward-Looking Statements
SAFE HARBOR NOTICE FORWARD-LOOKING STATEMENTS 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
Slide 3: MYR Group Inc. - A Market Leader in Electrical Construction
MYR GROUP INC. - A MARKET LEADER IN ELECTRICAL CONSTRUCTION : MYRG SINCE 2008 QUALITY SOLUTIONS FOR INCREASED ELECTRIFICATION CONTINUED GROWTH Healthy organic and acquisitive growth MYR Group Inc. is a holding company of subsidiaries that have delivered some of the OFFICE LOCATIONS SUPERIOR SAFETY C
Slide 4: Ranked Among Top 5 U.S. Specialty Electrical Contractors
RANKED AMONG TOP 5 U.S. SPECIALTY ELECTRICAL CONTRACTORS $3.54B 09/30/2024 LTM 29 YEARS IN A ROW $3.64B 2023 $3.01B 2022 $2.50B 2021 $2.25B 2020 $2.07B 2019 CAGR 11.9% 4
Slide 5: Outlook
WHAT WE SEE OUTLOOK • 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
Slide 6: Depth & Breadth of Expertise
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 experts
Slide 7: Business Segment Update: Transmission & Distribution (T&D)
BUSINESS SEGMENT UPDATE TRANSMISSION & DISTRIBUTION (T&D) • T&D September 30, 2024 LTM revenue of $2.02B • $799M T&D segment backlog as of September 30, 2024* • Strong, long-standing relationships with a diverse customer base where approx. 50% of business is performed under Master Service Agreements
Slide 8: T&D Market Outlook
STRONG LONG-TERM DRIVERS T&D MARKET OUTLOOK • The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) will invest significantly in our nation’s Actual and Projected Transmission Investment of Investor-Owned Electric Companies infrastructure over the next decade, including $73 billion for the
Slide 9: Business Segment Update: Commercial & Industrial (C&I)
BUSINESS SEGMENT UPDATE COMMERCIAL & INDUSTRIAL (C&I) • C&I September 30, 2024 LTM revenue of $1.52 billion • Strong $1.80B C&I segment backlog as of September 30, 2024 • Growth in our core markets is driven by increasing investments in data centers, transportation, clean energy, and healthcare, as
Slide 10: C&I Market Outlook
ACTIVE MARKET DRIVERS C&I MARKET OUTLOOK MYR Group’s C&I segment sees steady bidding opportunities in our core markets and we continue to be well diversified. • Infrastructure Investment and Jobs Act funding is expected to continue driving growth in infrastructure construction categories including h
Slide 11: Data Center Market Expansion
MARKET OPPORTUNITIES FOR BOTH T&D AND C&I DATA CENTER MARKET EXPANSION • Data center power demand is expected to increase by 15%/year from 2023 to 2030, which would mean that Data center infrastructure demand is growing with the economy’s continued data centers will make up 8% of the total US power
Slide 12: Clean Energy Generation Mix
MARKET OPPORTUNITIES FOR BOTH T&D AND C&I CLEAN ENERGY GENERATION MIX The generation mix across the U.S. and Canada is changing as traditional • The Inflation Reduction Act’s clean energy tax credits could help triple U.S. renewable energy capacity in baseload generation resources retire and clean e
Slide 13: Clean Energy Transformation Partner
CLEAN ENERGY TRANSFORMATION PARTNER We don’t just create connections that empower people – we create connections that help our partners achieve their energy goals. 13
Slide 14: Positions MYR Group for Continued Growth
STRONG MARKET COUPLED WITH OUR COMPETITIVE EDGE POSITIONS MYR GROUP FOR CONTINUED GROWTH INVESTMENT HIGHLIGHTS STRATEGIC GROWTH Healthy organic and acquisitive growth Proven execution of corporate strategy Strong financial position U.S./Canada T&D C&I Clean Energy Long-term growth Well-diversified C
Slide 15: Building a Sustainable Future with Corporate Responsibility
BUILDING A SUSTAINABLE FUTURE WITH CORPORATE RESPONSIBILITY Reducing Our Impact On Projects Keeping Safety at Our Core Recycling scrap material Behavioral commitment to safety Environmental compliance Strong culture built on leadership, employee dedication, top-notch training programs, industry invo
Slide 16: Dividend-Adjusted Stock Return
DELIVERING STRONG RETURNS DIVIDEND-ADJUSTED STOCK RETURN Dividend-Adjusted Stock Return (01/02/2019 - 09/30/2024) MYRG Div.-Adj. Return EME Div.-Adj. Return PWR Div.-Adj. Return MTZ Div.-Adj. Return DY Div. Adj.-Return 1000.0% PWR - CAGR 49.60% Dividend Adjusted Stock Return Stock Price as of: MYRG
Slide 17: Financial Snapshot
DELIVERING STRONG RETURNS FINANCIAL SNAPSHOT “ Our core markets remain active, and bidding activity continued at a robust pace during the Q3 2024 RESULTS quarter. Opportunities for long-term growth remain healthy as we continue to strategically expand our strong customer relationships across our bus
Slide 18: Balance Sheet Strength
WELL-POSITIONED TO SUPPORT ADDITIONAL GROWTH BALANCE SHEET STRENGTH CAPEX Investment CAPEX Spend CAPEX % of Rev Millions $100 10.0% • Low debt leverage $84.7 $84.6 $80 $77.1 8.0% • Strong balance sheet with $375M in availability under our $490M credit facility $57.8 $60 $44.4 $52.4 6.0% • Substantia
Slide 19: Financial Performance
DEMONSTRATES STRONG, LONG-TERM EXECUTION FINANCIAL PERFORMANCE Revenue by Work Type Backlog Backlog > 12 Mo 12 Mo. Backlog 12.5% CAGR Trans. Dist. C&I 11.9% CAGR $3,000 $2,598 Millions $2,502 $2,512 $4,000 $3,644 $3,537 $2,500 Millions $3,500 $3,009 $2,000 $1,789 $3,000 $2,498 $1,649 $2,247 $1,499 $
Slide 20: Experienced Leadership Team
EXECUTIVES & BOARD OF DIRECTORS EXPERIENCED LEADERSHIP TEAM BOARD OF DIRECTORS STATISTICS 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 a critical 38% 25% 88% 7:1 Racially/Ethnically/ Majority
Slide 21: Creating Shareholder Value
CREATING SHAREHOLDER VALUE Strategic expansion of geographic footprint into new markets Invest in additional fleet and labor resources to ORGANIC GROWTH expand capacity Expand in new and existing Leverage extensive bid knowledge and long- markets that align with core term customer relationships capa
Slide 22: Reconciliation of Non-GAAP Measures
DEMONSTRATES STRONG LONG-TERM EXECUTION RECONCILIATION OF NON-GAAP MEASURES EBITDA FREE CASH FLOW ($ In Millions, Except Per Share Amounts)* FY LTM LTM 2019 2020 2021 2022 2023 9/30/2024 9/30/2024 Net Income $ 36.2 $ 58.8 $ 85.0 $ 83.4 $ 91.0 $ 38.4 Net cash flow from operating activities $ 108.6 In
Slide 23: Financial Ratios and S&P Capital IQ Disclaimer
S&P CAPITAL IQ DISCLAIMER OF LIABILITY NOTICE This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of