MYR GROUP INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS MYR GROUP INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) September 30, 2025 December 31, 2024 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 76,211 $ 3,464 Accounts receivable, net of allowances of $ 935 and $ 1,129 , respectively 600,708 653,069 Contract assets, net of allowances of $ 540 and $ 422 , respectively 353,481 301,942 Current portion of receivable for insurance claims in excess of deductibles 9,500 9,081 Refundable income taxes 5,644 4,638 Prepaid expenses and other current assets 22,817 42,468 Total current assets 1,068,361 1,014,662 Property and equipment, net of accumulated depreciation of $ 407,471 and $ 387,223 , respectively 291,862 278,226 Operating lease right-of-use assets 44,789 42,648 Goodwill 114,522 112,983 Intangible assets, net of accumulated amortization of $ 38,549 and $ 34,573 , respectively 73,182 75,691 Receivable for insurance claims in excess of deductibles 34,645 34,553 Deferred income taxes 5,900 5,734 Investment in joint ventures 3,771 3,730 Other assets 8,300 5,832 Total assets $ 1,645,332 $ 1,574,059 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 4,554 $ 4,363 Current portion of operating lease obligations 13,140 12,141 Current portion of finance lease obligations 824 1,046 Accounts payable 298,160 295,476 Contract liabilities 302,549 321,958 Current portion of accrued self-insurance 26,786 25,883 Accrued income taxes 8,188 196 Other current liabilities 146,723 87,837 Total current liabilities 800,924 748,900 Deferred income tax liabilities 56,281 52,498 Long-term debt 67,422 70,018 Accrued self-insurance 55,555 53,600 Operating lease obligations, net of current maturities 31,623 30,496 Finance lease obligations, net of current maturities 1,402 1,930 Other liabilities 14,537 16,257 Total liabilities 1,027,744 973,699 Commitments and contingencies Shareholders’ equity: Preferred stock—$ 0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock—$ 0.01 par value per share; 100,000,000 authorized shares; 15,522,834 and 16,121,901 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 155 161 Additional paid-in capital 160,187 159,133 Accumulated other comprehensive loss ( 9,446 ) ( 12,651 ) Retained earnings 466,692 453,717 Total shareholders’ equity 617,588 600,360 Total liabilities and shareholders’ equity $ 1,645,332 $ 1,574,059 The accompanying notes are an integral part of these consolidated financial statements. 2 Table of Contents MYR GROUP INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2025 2024 2025 2024 Contract revenues $ 950,400 $ 888,043 $ 2,684,345 $ 2,532,495 Contract costs 838,508 810,755 2,371,841 2,328,121 Gross profit 111,892 77,288 312,504 204,374 Selling, general and administrative expenses 65,919 57,456 191,756 181,528 Amortization of intangible assets 1,214 1,221 3,613 3,666 Gain on sale of property and equipment ( 1,512 ) ( 1,750 ) ( 3,213 ) ( 4,745 ) Income from operations 46,271 20,361 120,348 23,925 Other income (expense): Interest income 197 73 433 296 Interest expense ( 1,440 ) ( 2,016 ) ( 4,759 ) ( 4,311 ) Other income (expense), net ( 297 ) 112 ( 1,130 ) ( 421 ) Income before provision for income taxes 44,731 18,530 114,892 19,489 Income tax expense 12,637 7,881 33,024 5,178 Net income $ 32,094 $ 10,649 $ 81,868 $ 14,311 Income per common share: —Basic $ 2.07 $ 0.65 $ 5.22 $ 0.86 —Diluted $ 2.05 $ 0.65 $ 5.20 $ 0.86 Weighted average number of common shares and potential common shares outstanding: —Basic 15,528 16,283 15,681 16,582 —Diluted 15,631 16,324 15,752 16,647 Net income $ 32,094 $ 10,649 $ 81,868 $ 14,311 Other comprehensive income (loss): Foreign currency translation adjustment ( 1,789 ) 1,309 3,205 ( 2,336 ) Other comprehensive income (loss) ( 1,789 ) 1,309 3,205 ( 2,336 ) Total comprehensive income $ 30,305 $ 11,958 $ 85,073 $ 11,975 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents MYR GROUP INC. UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Preferred Common Stock Additional Paid-In Accumulated Other Comprehensive Retained (in thousands) Stock Shares Amount Capital Income (Loss) Earnings Total Balance at December 31, 2023 $ — 16,684 $ 167 $ 162,386 $ ( 3,880 ) $ 492,529 $ 651,202 Net income — — — — — 18,939 18,939 Stock issued under compensation plans, net — 114 1 ( 1 ) — — — Stock-based compensation expense — — — 1,917 — — 1,917 Shares repurchased related to tax withholding for stock-based compensation — ( 36 ) ( 1 ) ( 5,511 ) — ( 354 ) ( 5,866 ) Other comprehensive loss — — — — ( 2,472 ) — ( 2,472 ) Balance at March 31, 2024 — 16,762 167 158,791 ( 6,352 ) 511,114 663,720 Net loss — — — — — ( 15,277 ) ( 15,277 ) Stock issued under compensation plans, net — 3 — — — — — Stock-based compensation expense — — — 2,331 — — 2,331 Share repurchases under share repurchase program — ( 117 ) ( 1 ) ( 1,121 ) — ( 15,137 ) ( 16,259 ) Other comprehensive loss — — — — ( 1,173 ) — ( 1,173 ) Balance at June 30, 2024 — 16,648 166 160,001 ( 7,525 ) 480,700 633,342 Net income — — — — — 10,649 10,649 Stock-based compensation expense — — — 1,950 — — 1,950 Share repurchases under share repurchase program — ( 526 ) ( 5 ) ( 5,152 ) — ( 53,584 ) ( 58,741 ) Other comprehensive income — — — — 1,309 — 1,309 Balance at September 30, 2024 $ — 16,122 $ 161 $ 156,799 $ ( 6,216 ) $ 437,765 $ 588,509 Balance at December 31, 2024 $ — 16,122 $ 161 $ 159,133 $ ( 12,651 ) $ 453,717 $ 600,360 Net income — — — — — 23,308 23,308 Stock issued under compensation plans, net — 58 1 ( 1 ) — — — Stock-based compensation expense — — — 2,333 — — 2,333 Shares repurchased related to tax withholding for stock-based compensation — ( 19 ) ( 1 ) ( 2,264 ) — ( 186 ) ( 2,451 ) Share repurchases under share repurchase program — ( 639 ) ( 6 ) ( 6,303 ) — ( 68,691 ) ( 75,000 ) Other comprehensive income — — — — 122 — 122 Balance at March 31, 2025 — 15,522 155 152,898 ( 12,529 ) 408,148 548,672 Net income — — — — — 26,466 26,466 Stock issued under compensation plans, net — 3 — — — — — Stock-based compensation expense — — — 3,426 — — 3,426 Shares repurchased related to tax withholding for stock-based compensation — ( 2 ) — ( 186 ) — ( 16 ) ( 202 ) Other comprehensive income — — — — 4,872 — 4,872 Balance at June 30, 2025 — 15,523 155 156,138 ( 7,657 ) 434,598 583,234 Net income — — — — — 32,094 32,094 Stock-based compensation expense — — — 4,049 — — 4,049 Other comprehensive loss — — — — ( 1,789 ) — ( 1,789 ) Balance at September 30, 2025 $ — 15,523 $ 155 $ 160,187 $ ( 9,446 ) $ 466,692 $ 617,588 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents MYR GROUP INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, (in thousands) 2025 2024 Cash flows from operating activities: Net income $ 81,868 $ 14,311 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization of property and equipment 45,664 45,131 Amortization of intangible assets 3,613 3,666 Stock-based compensation expense 9,808 6,198 Deferred income taxes 3,312 ( 144 ) Gain on sale of property and equipment ( 3,213 ) ( 4,745 ) Other non-cash items 345 1,044 Changes in operating assets and liabilities: Accounts receivable, net 53,714 ( 50,193 ) Contract assets, net ( 49,762 ) 8,212 Receivable for insurance claims in excess of deductibles ( 511 ) ( 1,975 ) Other assets 14,241 21,687 Accounts payable 4,795 ( 20,607 ) Contract liabilities ( 19,889 ) 22,294 Accrued self-insurance 2,845 ( 402 ) Other liabilities 64,907 21,519 Net cash flows provided by operating activities 211,737 65,996 Cash flows from investing activities: Proceeds from sale of property and equipment 6,014 6,815 Purchases of property and equipment ( 64,467 ) ( 63,634 ) Net cash flows used in investing activities ( 58,453 ) ( 56,819 ) Cash flows from financing activities: Borrowings under revolving lines of credit 635,003 584,070 Repayments under revolving lines of credit ( 633,048 ) ( 520,076 ) Payment of principal obligations under equipment notes ( 4,360 ) ( 7,049 ) Payment of principal obligations under finance leases ( 844 ) ( 2,083 ) Repurchase of common stock ( 75,000 ) ( 75,000 ) Debt refinancing costs — ( 34 ) Payments related to tax withholding for stock-based compensation ( 2,653 ) ( 5,866 ) Net cash flows used in financing activities ( 80,902 ) ( 26,038 ) Effect of exchange rate changes on cash 365 ( 469 ) Net increase (decrease) in cash and cash equivalents 72,747 ( 17,330 ) Cash and cash equivalents: Beginning of period 3,464 24,899 End of period $ 76,211 $ 7,569 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents MYR GROUP INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 1. Organization, Business and Basis of Presentation Organization and Business MYR Group Inc. (the “Company”) is a holding company of specialty electrical construction service providers conducting operations through wholly owned subsidiaries. The Company performs construction services in two business segments: Transmission and Distribution (“T&D”), and Commercial and Industrial (“C&I”). T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. T&D provides a broad range of services on electric transmission, distribution networks, substation facilities, clean energy projects and electric vehicle charging infrastructure. T&D services include design, engineering, procurement, construction, upgrade, maintenance and repair services. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. C&I provides a broad range of services, which include the design, installation, maintenance and repair of commercial and industrial wiring. Typical C&I contracts cover electrical contracting services for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. Basis of Presentation Interim Consolidated Financial Information The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income (loss), shareholders’ equity and cash flows with respect to the interim consolidated financial statements, have been included. The consolidated balance sheet as of December 31, 2024 has been derived from the audited financial statements as of that date. The results of operations and comprehensive income are not necessarily indicative of the results for the full year or the results for any future periods. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 26, 2025 (the "2024 Annual Report"). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates. The most significant estimates are related to estimates of costs to complete contracts, variable consideration inclusive of pending change orders and claims, shared savings, useful lives of property and equipment, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition. The Company estimates costs to complete on fixed price contracts which are determined on an individual contract basis by evaluating each project’s status as of the balance sheet date, and using our historical experience with the level of effort required to complete the underlying project. Claims and change orders are measured based on our historical experience with individual customers and similar contracts, and are evaluated by management individually. The Company includes these estimated amounts of variable consideration to the extent that it is probable there will not be a significant reversal of revenue. 6 Table of Contents Some of the Company’s contracts may have contract terms that include variable consideration such as safety or performance bonuses or liquidated damages. The Company includes the estimated amount of variable consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative recognized revenue will not occur when the final outcome of the variable consideration is determined. In contracts in which a significant reversal may occur, the Company exercises restraint in recognizing revenue on variable consideration. The Company often enters into contracts that contain liquidated damage clauses. The Company does not include amounts associated with liquidated damage clauses until it is probable that liquidated damages will occur. These items are continually monitored by multiple levels of management throughout the reporting period. As of September 30, 2025 and December 31, 2024, the Company had recognized revenues of $ 14.3 million and $ 46.0 million, respectively, related to large change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods. The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the three months ended September 30, 2025, net changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.6 %, which resulted in decreases in operating income of $ 5.5 million, net income of $ 4.2 million and diluted earnings per common share of $ 0.27 . During the nine months ended September 30, 2025, changes in estimates pertaining to certain projects decreased consolidated gross margin by 1.3 % and resulted in decreases in operating income of $ 33.9 million, net income of $ 24.8 million and diluted earnings per common share of $ 1.58 . Additional discussion on the impact of these estimate changes can be found in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Consolidated Results of Operations.” During the three months ended September 30, 2024, net changes in estimates pertaining to certain projects decreased consolidated gross margin by 3.9 %, which resulted in decreases in operating income of $ 34.9 million, net income of $ 22.3 million and diluted earnings per common share of $ 1.37 . During the nine months ended September 30, 2024, changes in estimates pertaining to certain projects decreased consolidated gross margin by 4.4 % and resulted in decreases in operating income of $ 112.7 million, net income of $ 70.5 million and diluted earnings per common share of $ 4.24 . Foreign Currency The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and intercompany loans that are not deemed long-term investment accounts are recorded in the “other income (expense), net” line on the Company’s consolidated statements of operations. Foreign currency losses and gains, recorded in other income (expense), net, for the three months ended September 30, 2025 and 2024 were $ 0.3 million and $ 0.1 million, respectively. Foreign currency losses, recorded in other income (expense), net, for the nine months ended September 30, 2025 and 2024 were $ 1.1 million and $ 0.4 million, respectively. Foreign currency translation gains and losses, arising from intercompany loans that are deemed long-term investment accounts, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income. Recent Accounting Pronouncements Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or will have minimal impact on its financial statements when adopted. 7 Table of Contents In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The guidance also includes certain other amendments intended to improve the effectiveness of income tax disclosures. The update is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The amendments in this pronouncement should be applied on a prospective basis, with the option to apply them retrospectively. The Company is currently evaluating the impact of the new standard on the Company’s income tax disclosures. In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires the disaggregation of certain expenses in the notes of the financials, to provide enhanced transparency into the expense captions presented on the face of the income statement. The guidance will require disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The update is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments in this pronouncement should be applied either (i) prospectively to financial statements issued for reporting periods after the effective date or (ii) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements and related disclosures. 2. Contract Assets and Liabilities Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms. These contracts frequently include retention provisions contained in each contract. The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $ 0.5 million as of September 30, 2025 and $ 0.4 million as of December 31, 2024. Contract assets consisted of the following: (in thousands) September 30, 2025 December 31, 2024 Change Unbilled revenue, net $ 169,761 $ 149,449 $ 20,312 Contract retainages, net 183,720 152,493 31,227 Contract assets, net $ 353,481 $ 301,942 $ 51,539 The Company’s consolidated balance sheets present contract liabilities that contain deferred revenue and an accrual for contracts in a loss provision. Contract liabilities consisted of the following: (in thousands) September 30, 2025 December 31, 2024 Change Deferred revenue $ 294,243 $ 312,632 $ ( 18,389 ) Accrued loss provision 8,306 9,326 ( 1,020 ) Contract liabilities $ 302,549 $ 321,958 $ ( 19,409 ) 8 Table of Contents The following table provides information about contract assets and contract liabilities from contracts with customers: (in thousands) September 30, 2025 December 31, 2024 Change Contract assets, net $ 353,481 $ 301,942 $ 51,539 Contract liabilities ( 302,549 ) ( 321,958 ) 19,409 Net contract assets $ 50,932 $ ( 20,016 ) $ 70,948 The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenue recognized in the period that were included in the opening contract liability balances was $ 34.8 million and $ 148.9 million for the three and nine months ended September 30, 2025, respectively. The amounts of revenue recognized in the period that were included in the opening contract liability balances was $ 60.4 million and $ 137.0 million for the three and nine months ended September 30, 2024, respectively. This revenue consists primarily of work performed on previous billings to customers. The net asset position for contracts in process consisted of the following: (in thousands) September 30, 2025 December 31, 2024 Costs and estimated earnings on uncompleted contracts $ 7,950,782 $ 7,627,894 Less: billings to date 8,075,264 7,791,077 $ ( 124,482 ) $ ( 163,183 ) The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows: (in thousands) September 30, 2025 December 31, 2024 Unbilled revenue $ 169,761 $ 149,449 Deferred revenue ( 294,243 ) ( 312,632 ) $ ( 124,482 ) $ ( 163,183 ) 3. Lease Obligations From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from less than one to twelve years , some of which may include options to extend the leases for up to ten years , and some of which may include options to terminate the leases within one year . Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2025, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease. 9 Table of Contents The following is a summary of the lease-related assets and liabilities recorded: September 30, 2025 December 31, 2024 (in thousands) Classification on the Consolidated Balance Sheet Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 44,789 $ 42,648 Finance lease right-of-use assets Property and equipment, net of accumulated depreciation 2,321 3,215 Total right-of-use lease assets $ 47,110 $ 45,863 Liabilities Current Operating lease obligations Current portion of operating lease obligations $ 13,140 $ 12,141 Finance lease obligations Current portion of finance lease obligations 824 1,046 Total current obligations 13,964 13,187 Non-current Operating lease obligations Operating lease obligations, net of current maturities 31,623 30,496 Finance lease obligations Finance lease obligations, net of current maturities 1,402 1,930 Total non-current obligations 33,025 32,426 Total lease obligations $ 46,989 $ 45,613 The following is a summary of the lease terms and discount rates: September 30, 2025 December 31, 2024 Weighted-average remaining lease term - finance leases 2.7 years 3.3 years Weighted-average remaining lease term - operating leases 3.8 years 3.7 years Weighted-average discount rate - finance leases 3.9 % 3.9 % Weighted-average discount rate - operating leases 4.0 % 4.0 % The following is a summary of certain information related to the lease costs for finance and operating leases: (in thousands) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 242 $ 335 $ 736 $ 653 Interest on lease liabilities 23 30 77 69 Operating lease cost 4,776 3,956 13,750 11,446 Variable lease costs 109 95 332 279 Total lease cost $ 5,150 $ 4,416 $ 14,895 $ 12,447 10 Table of Contents The following is a summary of other information and supplemental cash flow information related to finance and operating leases: Nine months ended September 30, (in thousands) 2025 2024 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 13,673 $ 10,969 Right-of-use asset obtained in exchange for new operating lease obligations $ 14,123 $ 13,458 Right-of-use asset obtained in exchange for new finance lease obligations $ — $ 3,595 The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of September 30, 2025 were as follows: (in thousands) Finance Lease Obligations Operating Lease Obligations Total Lease Obligations Remainder of 2025 $ 254 $ 4,852 $ 5,106 2026 856 16,682 17,538 2027 855 11,286 12,141 2028 382 9,089 9,471 2029 — 5,984 5,984 2030 — 2,185 2,185 Thereafter — 1,914 1,914 Total minimum lease payments 2,347 51,992 54,339 Financing component ( 121 ) ( 7,229 ) ( 7,350 ) Net present value of minimum lease payments 2,226 44,763 46,989 Less: current portion of finance and operating lease obligations ( 824 ) ( 13,140 ) ( 13,964 ) Long-term finance and operating lease obligations $ 1,402 $ 31,623 $ 33,025 The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value. Certain subsidiaries of the Company have ongoing operating leases for facilities that were entered into or extended with third-party companies that, are or were, owned in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at or below market rental rates. Lease expense associated with these leases was $ 0.7 million and $ 1.9 million for the three and nine months ended September 30, 2025 and $ 0.6 million and $ 1.9 million for the three and nine months ended September 30, 2024. As of September 30, 2025, the minimum lease payments required under these leases totaled $ 7.9 million, which are due over the next 3.9 years. 4. Fair Value Measurements The Company uses the three-tier hierarchy of fair value measurement, which prioritizes the inputs used in measuring fair value based upon their degree of availability in external active markets. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. 11 Table of Contents As of September 30, 2025 and December 31, 2024, the Company determined that the carrying value of cash and cash equivalents approximated fair value based on Level 1 inputs. As of September 30, 2025 and December 31, 2024, the fair value of the Company’s long-term debt and finance lease obligations was based on Level 2 inputs. The Company’s long-term debt was based on variable and fixed interest rates at September 30, 2025 and December 31, 2024, for new issues with similar remaining maturities, and approximated carrying value. In addition, based on borrowing rates currently available to the Company for borrowings with similar terms, the carrying value of the Company’s finance lease obligations also approximated fair value. 5. Debt The table below reflects the Company’s total debt, including borrowings under its credit agreement and master loan agreements for equipment notes: (dollar amounts in thousands) Inception Date Stated Interest Rate (per annum) Payment Frequency Term (years) Outstanding Balance as of September 30, 2025 Outstanding Balance as of December 31, 2024 Credit Agreement Revolving loans 5/31/2023 Variable Variable 5 $ 60,350 $ 58,395 Equipment Notes Equipment Note 10 8/26/2022 4.32 % Semi-annual 5 11,605 15,957 Other equipment note 4/11/2022 4.55 % Monthly 5 21 29 11,626 15,986 Total debt 71,976 74,381 Less: current portion of long-term debt ( 4,554 ) ( 4,363 ) Long-term debt $ 67,422 $ 70,018 Credit Agreement On May 31, 2023, the Company entered into a five-year third amended and restated credit agreement (the “Credit Agreement”) with a syndicate of banks led by JPMorgan Chase Bank, N.A. and Bank of America, N.A. that provides for a $ 490 million revolving credit facility (the “Facility”), subject to certain financial covenants as defined in the Credit Agreement. The Facility allows for revolving loans in Canadian dollars and other non-US currencies, up to the U.S. dollar equivalent of $ 150 million. Up to $ 75 million of the Facility may be used for letters of credit, with an additional $ 75 million available for letters of credit, subject to the sole discretion of each issuing bank. The Facility also allows for $ 15 million to be used for swingline loans. The Company has an expansion option to increase the commitments under the Facility or enter into incremental term loans, subject to certain conditions, by up to an additional $ 200 million upon receipt of additional commitments from new or existing lenders. Subject to certain exceptions, the Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries, and by a pledge of substantially all of the capital stock of the Company’s domestic subsidiaries and 65 % of the capital stock of the direct foreign subsidiaries of the Company. Additionally, subject to certain exceptions, the Company’s domestic subsidiaries also guarantee the repayment of all amounts due under the Credit Agreement. The Credit Agreement provides for customary events of default. If an event of default occurs and is continuing, on the terms and subject to the conditions set forth in the Credit Agreement, amounts outstanding under the Facility may be accelerated and may become or be declared immediately due and payable. Borrowings under the Credit Agreement are used to refinance existing indebtedness, and to provide for future working capital, capital expenditures, acquisitions and other general corporate purposes. Amounts borrowed under the Credit Agreement bear interest, at the Company’s option, at a rate equal to either (1) the Alternate Base Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 0.25 % to 1.00 %; or (2) the Term Benchmark Rate (as defined in the Credit Agreement) plus an applicable margin ranging from 1.25 % to 2.00 %. The applicable margin is determined based on the Company’s Net Leverage Ratio (as defined in the Credit Agreement). Letters of credit issued under the Facility are subject to a letter of credit fee of 1.25 % to 2.00 % for non-performance letters of credit or 0.625 % to 1.00 % for performance letters of credit, based on the Company’s Net Leverage Ratio. The Company is subject to a commitment fee of 0.20 % to 0.30 %, based on the Company’s Net Leverage Ratio, on any unused portion of the Facility. The Credit Agreement restricts certain types of payments when the Company’s Net Leverage Ratio, after giving pro forma effect thereto, exceeds 2.75 . The weighted average interest rate on borrowings outstanding on the Facility was 4.92 % and 7.03 %, per annum, for the nine months ended September 30, 2025 and 2024, respectively. 12 Table of Contents Under the Credit Agreement, the Company is subject to certain financial covenants including a maximum Net Leverage Ratio of 3.0 and a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 3.0 . The Credit Agreement also contains covenants including limitations on asset sales, investments, indebtedness and liens. The Company was in compliance with all of its financial covenants under the Credit Agreement as of September 30, 2025. As of September 30, 2025, the Company had $ 60.4 million of borrowings outstanding under the Facility and letters of credit outstanding under the Facility of $ 29.9 million, including $ 29.8 million related to the Company's payment obligation under its insurance programs and $ 0.1 million related to contract performance obligations. As of December 31, 2024, the Company had $ 58.4 million of borrowings outstanding under the Facility and letters of credit outstanding under the Facility of $ 37.3 million, including $ 32.6 million related to the Company's payment obligation under its insurance programs and $ 4.7 million related to contract performance obligations. The Company had remaining deferred debt issuance costs related to the Facility totaling $ 1.4 million and $ 1.8 million as of September 30, 2025 and December 31, 2024, respectively. As permitted, debt issuance costs have been deferred and are presented as an asset within other assets, which is amortized as interest expense over the term of the Facility. Equipment Notes The Company has entered into Master Equipment Loan and Security Agreements (the “Master Loan Agreements”) with multiple finance companies. The Master Loan Agreements may be used for the financing of equipment between the Company and the lenders pursuant to one or more equipment notes ("Equipment Note"). Each Equipment Note executed under the Master Loan Agreements constitutes a separate, distinct and independent financing of equipment and a contractual obligation of the Company, which may contain prepayment clauses. As of September 30, 2025, the Company had one Equipment Note outstanding under the Master Loan Agreements that is collateralized by equipment and vehicles owned by the Company. As of September 30, 2025, the Company had one other equipment note outstanding that is collateralized by a vehicle owned by the Company. The following table sets forth our remaining principal payments for all of the Company’s outstanding equipment notes as of September 30, 2025: (in thousands) Future Equipment Notes Principal Payments Remainder of 2025 $ 3 2026 4,555 2027 7,068 2028 — 2029 — 2030 — Total future principal payments 11,626 Less: current portion of equipment notes ( 4,554 ) Long-term principal obligations $ 7,072 6. Revenue Recognition Disaggregation of Revenue A majority of the Company’s revenues are earned through contracts with customers that normally provide for payment upon completion of specified work or units of work as identified in the contract. Although there is considerable variation in the terms of these contracts, they are primarily structured as fixed-price contracts, under which the Company agrees to perform a defined scope of a project for a fixed amount, or unit-price contracts, under which the Company agrees to do the work at a fixed price per unit of work as specified in the contract. The Company also enters into time-and-equipment and time-and-materials contracts under which the Company is paid for labor and equipment at negotiated hourly billing rates and for other expenses, including materials, as incurred at rates agreed to in the contract. Finally, the Company sometimes enters into cost-plus contracts, where the Company is paid for costs plus a negotiated margin. On occasion, time-and-equipment, time-and-materials and cost-plus contracts require the Company to include a guarantee not-to-exceed a maximum price. 13 Table of Contents Historically, fixed-price and unit-price contracts have had the highest potential margins; however, they have had a greater risk in terms of profitability because cost overruns may not be recoverable. Time-and-equipment, time-and-materials and cost-plus contracts have historically had less margin upside, but generally have had a lower risk of cost overruns. The Company also provides services under master service agreements (“MSAs”) and other variable-term service agreements. MSAs normally cover maintenance, upgrade and extension services, as well as new construction. Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one to three years in duration; however, most of the Company’s contracts, including MSAs, may be terminated by the customer on short notice, typically 30 to 90 days, even if the Company is not in default under the contract. Under MSAs, customers generally agree to use the Company for certain services in a specified geographic region. Most MSAs include no obligation for the contract counterparty to assign specific volumes of work to the Company and do not require the counterparty to use the Company exclusively, although in some cases the MSA contract gives the Company a right of first refusal for certain work. Additional information related to the Company’s market types is provided in Note 10–Segment Information. The components of the Company’s revenue by contract type for the three months ended September 30, 2025 and 2024 were as follows: Three months ended September 30, 2025 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 160,811 31.9 % $ 381,026 85.3 % $ 541,837 57.0 % Unit price 204,438 40.6 20,259 4.5 224,697 23.6 T&E 138,187 27.5 45,679 10.2 183,866 19.4 $ 503,436 100.0 % $ 446,964 100.0 % $ 950,400 100.0 % Three months ended September 30, 2024 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 197,087 40.9 % $ 331,103 81.5 % $ 528,190 59.5 % Unit price 169,337 35.1 23,849 5.9 193,186 21.7 T&E 115,452 24.0 51,215 12.6 166,667 18.8 $ 481,876 100.0 % $ 406,167 100.0 % $ 888,043 100.0 % The components of the Company’s revenue by contract type for the nine months ended September 30, 2025 and 2024 were as follows: Nine months ended September 30, 2025 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 512,379 34.8 % $ 1,004,813 82.8 % $ 1,517,192 56.5 % Unit price 547,562 37.2 58,172 4.8 605,734 22.6 T&E 411,538 28.0 149,881 12.4 561,419 20.9 $ 1,471,479 100.0 % $ 1,212,866 100.0 % $ 2,684,345 100.0 % Nine months ended September 30, 2024 T&D C&I Total (dollars in thousands) Amount Percent Amount Percent Amount Percent Fixed price $ 654,969 45.8 % $ 902,582 81.9 % $ 1,557,551 61.5 % Unit price 443,589 31.0 58,988 5.4 502,577 19.8 T&E 331,922 23.2 140,445 12.7 472,367 18.7 $ 1,430,480 100.0 % $ 1,102,015 100.0 % $ 2,532,495 100.0 % 14 Table of Contents The components of the Company’s revenue by market type for the three months ended September 30, 2025 and 2024 were as follows: Three months ended September 30, 2025 Three months ended September 30, 2024 (dollars in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 293,022 30.8 % T&D $ 276,663 31.2 % T&D Distribution 210,414 22.2 T&D 205,213 23.1 T&D Electrical construction 446,964 47.0 C&I 406,167 45.7 C&I Total revenue $ 950,400 100.0 % $ 888,043 100.0 % The components of the Company’s revenue by market type for the nine months ended September 30, 2025 and 2024 were as follows: Nine months ended September 30, 2025 Nine months ended September 30, 2024 (dollars in thousands) Amount Percent Segment Amount Percent Segment Transmission $ 868,244 32.3 % T&D $ 873,077 34.5 % T&D Distribution 603,235 22.5 T&D 557,403 22.0 T&D Electrical construction 1,212,866 45.2 C&I 1,102,015 43.5 C&I Total revenue $ 2,684,345 100.0 % $ 2,532,495 100.0 % Remaining Performance Obligations As of September 30, 2025, the Company had $ 2.34 billion of remaining performance obligations. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions. The timing of when remaining performance obligations are recognized is evaluated quarterly and is largely driven by the estimated start date and duration of the underlying projects. The following table summarizes the amount of remaining performance obligations as of September 30, 2025 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will be recognized within the next twelve months, and the amount estimated to be recognized after the next twelve months. Remaining Performance Obligations at September 30, 2025 (in thousands) Total Amount estimated to be recognized within 12 months Amount estimated to be recognized after 12 months T&D $ 619,085 $ 607,085 $ 12,000 C&I 1,722,288 1,506,053 216,235 Total $ 2,341,373 $ 2,113,138 $ 228,235 The Company estimates approximately 95 % or more of the remaining performance obligations will be recognized within twenty-four months, including approximately 90 % of the remaining performance obligations estimated to be recognized within twelve months, although the timing of the Company’s performance is not always under its control. The timing of when remaining performance obligations are recognized by the Company can vary considerably and is impacted by multiple variables including, but not limited to: changes in the estimated versus actual start time of a project; the availability of labor, equipment and materials; changes in project workflow; weather; project delays and accelerations; and the timing of final contract settlements. Additionally, the difference between the remaining performance obligations and backlog is due to the exclusion of a portion of the Company’s MSAs under certain contract types from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. Additional information related to backlog is provided in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 15 Table of Contents 7. Income Taxes The U.S. federal statutory tax rate was 21 % for each of the three and nine months ended September 30, 2025 and 2024. The Company’s effective tax rate for the three and nine months ended September 30, 2025 was 28.3 % and 28.7 %, respectively, of pretax income compared to the effective tax rate for the three and nine months ended September 30, 2024 of 42.5 % and 26.6 %, respectively. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rates for the three and nine months ended September 30, 2025 was primarily due to permanent difference items and state income taxes. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rates for the three months ended September 30, 2024 was primarily due to permanent difference items, largely related to deductibility limits of certain compensation including contingent compensation associated with a prior acquisition and U.S. taxes on Canadian income, as well as state income taxes. The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the nine months ended September 30, 2024 was primarily due to permanent difference items, largely related to deductibility limits of certain compensation including contingent compensation associated with a prior acquisition and U.S. taxes on Canadian income, as well as state income taxes, partially offset by a favorable impact from stock compensation excess tax benefits. The Company has recorded a liability for unrecognized tax benefits of approximately $ 0.4 million and $ 0.3 million as of September 30, 2025 and December 31, 2024, respectively, which were included in other liabilities in the accompanying consolidated balance sheets. The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was no t significant for the three and nine months ended September 30, 2025 and 2024. The Company is subject to taxation in various jurisdictions. The Company’s 2020 through 2023 tax returns are subject to examination by U.S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2019 through 2023. The Company’s 2020 through 2024 Canadian tax returns are subject to examination by the Canadian Revenue Agency. On July 4, 2025, the “One Big Beautiful Bill Act” (the “Act”) was signed into law. The Act includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The Act has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Act did not have a material impact on the Company’s effective tax rate for the three and nine months ended September 30, 2025. While further evaluation is ongoing, the Act is not expected to have a material impact on the Company's financial position or results of operations. 8. Commitments and Contingencies Purchase Commitments As of September 30, 2025, the Company had approximately $ 7.3 million in outstanding purchase orders for certain construction equipment, with cash payments scheduled to occur in 2025. Insurance and Claims Accruals The Company carries insurance policies, which are subject to certain deductibles and limits, for workers’ compensation, general liability, automobile liability and other insurance coverage. The deductible per occurrence for each line of coverage is up to $ 1.0 million. The Company’s health benefit plans are subject to stop-loss limits of up to $ 0.2 million for qualified individuals. Losses up to the deductible and stop-loss amounts are accrued based upon the Company’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not yet reported. 16 Table of Contents The insurance and claims accruals are based on known facts, actuarial estimates and historical trends. While recorded accruals are based on the ultimate liability, which includes amounts in excess of the deductible, a corresponding receivable for amounts in excess of the deductible is included in current and long-term assets in the Company’s consolidated balance sheets. Performance and Payment Bonds and Parent Guarantees In certain circumstances, the Company is required to provide performance and payment bonds in connection with its future performance on certain contractual commitments. The Company has indemnified its sureties for any expenses paid out under these bonds. As of September 30, 2025, an aggregate of approximately $ 2.26 billion in original face amount of bonds issued by the Company’s sureties were outstanding. The Company estimated the remaining cost to complete these bonded projects was approximately $ 702.2 million as of September 30, 2025. From time to time, the Company guarantees the obligations of wholly owned subsidiaries, including obligations under certain contracts with customers, certain lease agreements, and, in some states, obligations in connection with obtaining contractors’ licenses. Additionally, from time to time the Company is required to post letters of credit to guarantee the obligations of wholly owned subsidiaries, which reduces the borrowing availability under the Facility. Indemnities From time to time, pursuant to its service arrangements, the Company indemnifies its customers for claims related to the services it provides under those service arrangements. These indemnification obligations may subject the Company to indemnity claims, liabilities and related litigation. The Company is not aware of any material unrecorded liabilities for asserted claims in connection with these indemnification obligations. Collective Bargaining Agreements Most of the Company’s subsidiaries’ craft labor employees are covered by collective bargaining agreements. The agreements require the subsidiaries to pay specified wages, provide certain benefits and contribute certain amounts to multi-employer pension plans. If a subsidiary withdraws from any of the multi-employer pension plans or if the plans were to otherwise become underfunded, the subsidiary could incur liabilities for additional contributions related to these plans. Although the Company has been informed that the status of some multi-employer pension plans to which its subsidiaries contribute have been classified as “critical”, the Company is not currently aware of any potential liabilities related to this issue. Litigation and Other Legal Matters The Company is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. The Company is routinely subject to other civil claims, litigation and arbitration, and regulatory investigations arising in the ordinary course of business. These claims, lawsuits and other proceedings include claims related to the Company’s current services and operations, as well as our historic operations. With respect to all such lawsuits, claims and proceedings, the Company records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe that any of these proceedings, separately or in the aggregate, would be expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 9. Stock-Based Compensation The Company maintains an equity compensation plan under which stock-based compensation has been granted: the 2017 Long-Term Incentive Plan (Amended and Restated as of April 24, 2024) (the “LTIP”). The LTIP was approved by our shareholders and provides for grants of (a) incentive stock options qualified as such under U.S. federal income tax laws, (b) stock options that do not qualify as incentive stock options, (c) stock appreciation rights, (d) restricted stock awards, (e) restricted stock units, (f) performance awards, (g) phantom stock, (h) stock bonuses, (i) dividend equivalents, or (j) any combination of such grants. The Company has outstanding grants of time-vested stock awards in the form of restricted stock units and internal metric-based and market-based performance stock units. 17 Table of Contents During the nine months ended September 30, 2025, the Company granted time-vested stock awards covering 68,813 shares of common stock under the LTIP, which vest ratably over three years for employee awards and after one year for non-employee director awards, at a weighted average grant date fair value of $ 126.98 . During the nine months ended September 30, 2025, time-vested stock awards covering 39,629 shares of common stock vested at a weighted average grant date fair value of $ 134.78 . During the nine months ended September 30, 2025, the Company granted 53,678 performance share awards under the LTIP at target, which will cliff vest, if earned, on December 31, 2027, at a weighted average grant date fair value of $ 148.73 . The number of shares ultimately earned under a performance award may vary from zero to 200 % of the target shares granted, based upon the Company’s performance compared to certain financial and other metrics. The metrics used were determined at the time of the grant by the Compensation Committee of the Board of Directors and were either based on internal measures, such as the Company’s financial performance compared to targets, or on a market-based metric, such as the Company’s stock performance compared to a peer group. Performance awards granted cliff vest following the performance period if the stated performance targets and minimum service requirements are attained and are paid in shares of the Company’s common stock. The Company recognizes stock-based compensation expense related to restricted stock units based on the grant date fair value, which was the closing price of the Company’s stock on the date of grant. The fair value is expensed over the service period, which is generally three years . For performance awards, the Company recognizes stock-based compensation expense based on the grant date fair value of the award. The fair value of internal metric-based performance awards is determined by the closing stock price of the Company’s common stock on the date of the grant. The fair value of market-based performance awards is computed using a Monte Carlo simulation. Performance awards are expensed over the service period of approximately 2.8 years, and the Company adjusts the stock-based compensation expense related to internal metric-based performance awards according to its determination of the shares expected to vest at each reporting date. 10. Segment Information MYR Group is a holding company of specialty contractors serving electrical utility infrastructure and commercial construction markets in the United States and Canada. The Company has two reporting segments, each a separate operating segment, which are referred to as T&D and C&I. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer. The CODM uses segment revenue and income from operations, over multiple time periods, along with a comparison to the corresponding budgeted and prior year periods, as the primary basis for assessing segment performance and deciding how to allocate resources. Income from operations is the Company’s reported measure of segment profit or loss, as summarized in the table below, and excludes general corporate expenses. General corporate expenses reflect items that are generally viewed as Company-wide operating costs by the CODM and include items such as corporate facility and staffing costs, which includes safety costs, professional fees, IT expenses and certain management fees. The CODM also considers many other factors, such as contract terms, individual project performance, project location and other items, to support the CODM’s assessment of segment performance and resource allocation decisions. Transmission and Distribution: The T&D segment provides a broad range of services on electric transmission and distribution networks and substation facilities which include design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair. T&D services include the construction and maintenance of high voltage transmission lines, substations and lower voltage underground and overhead distribution systems, clean energy projects and electric vehicle charging infrastructure. The T&D segment also provides emergency restoration services. T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. Commercial and Industrial: The C&I segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, the installation of intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure. Typical C&I contracts cover electrical contracting services for data centers, airports, hospitals, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, and transportation control and management systems. The C&I segment generally provides electric construction and maintenance services as a subcontractor to general contractors in the C&I industry, 18 Table of Contents but also contracts directly with facility owners. The C&I segment has a diverse customer base with many long-standing relationships. The information in the following table is derived from the segment’s internal financial reports used for corporate management purposes: For the Three Months Ended September 30, 2025 (in thousands) T&D C&I General Corporate Consolidated Contract revenues $ 503,436 $ 446,964 $ — $ 950,400 Operating costs (1) 461,975 418,381 23,773 904,129 Income from operations 41,461 28,583 ( 23,773 ) 46,271 Other income (expense): Interest income 197 Interest expense ( 1,440 ) Other expense, net ( 297 ) Income before provision for income taxes 44,731 Income tax expense 12,637 Net income $ 32,094 For the Three Months Ended September 30, 2024 (in thousands) T&D C&I General Corporate Consolidated Contract revenues $ 481,876 $ 406,167 $ — $ 888,043 Operating costs (1) 464,308 385,858 17,516 867,682 Income (loss) from operations 17,568 20,309 ( 17,516 ) 20,361 Other income (expense): Interest income 73 Interest expense ( 2,016 ) Other income, net 112 Income before provision for income taxes 18,530 Income tax expense 7,881 Net income $ 10,649 For the Nine Months Ended September 30, 2025 (in thousands) T&D C&I General Corporate Consolidated Contract revenues $ 1,471,479 $ 1,212,866 $ — $ 2,684,345 Operating costs (1) 1,353,332 1,144,913 65,752 2,563,997 Income from operations 118,147 67,953 ( 65,752 ) 120,348 Other income (expense): Interest income 433 Interest expense ( 4,759 ) Other expense, net ( 1,130 ) Income before provision for income taxes 114,892 Income tax expense 33,024 Net income $ 81,868 19 Table of Contents For the Nine Months Ended September 30, 2024 (in thousands) T&D C&I General Corporate Consolidated Contract revenues $ 1,430,480 $ 1,102,015 $ — $ 2,532,495 Operating costs (1) 1,391,376 1,068,675 48,519 2,508,570 Income from operations 39,104 33,340 ( 48,519 ) 23,925 Other income (expense): Interest income 296 Interest expense ( 4,311 ) Other expense, net ( 421 ) Income before provision for income taxes 19,489 Income tax expense 5,178 Net income $ 14,311 (1) Operating costs include T&D, C&I and general corporate portion of contract costs, selling, general and administrative expenses, amortization of intangible assets and gain on sale of property and equipment. The expenses found in these other segment items are generally viewed as operating costs by the CODM and are not considered individually significant segment reporting items. The Company does not identify capital expenditures and total assets by segment in its internal financial reports due in part to the shared use of a centralized fleet of vehicles and specialized equipment. Identifiable assets, consisting of contract receivables, contract assets, construction materials inventory, goodwill and intangibles. As of September 30, 2025 and December 31, 2024, there were $ 182.5 million and $ 177.9 million, respectively, of identifiable assets attributable to Canadian operations. The table below reflects the identifiable assets for each segment. (in thousands) September 30, 2025 December 31, 2024 T&D $ 604,688 $ 601,546 C&I 533,143 539,687 General Corporate 507,501 432,826 $ 1,645,332 $ 1,574,059 An allocation of total depreciation, including depreciation of shared construction equipment, and amortization to each segment is as follows: For the Nine Months Ended September 30, (in thousands) 2025 2024 Depreciation and amortization T&D $ 42,737 $ 42,386 C&I 6,540 6,411 $ 49,277 $ 48,797 11. Earnings Per Share The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the period, and diluted earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. 20 Table of Contents Net income and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows: Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2025 2024 2025 2024 Numerator: Net income $ 32,094 $ 10,649 $ 81,868 $ 14,311 Denominator: Weighted average common shares outstanding 15,528 16,283 15,681 16,582 Weighted average dilutive securities 103 41 71 65 Weighted average common shares outstanding, diluted 15,631 16,324 15,752 16,647 Income per common share: Basic $ 2.07 $ 0.65 $ 5.22 $ 0.86 Diluted $ 2.05 $ 0.65 $ 5.20 $ 0.86 For the three and nine months ended September 30, 2025 and 2024, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would have been anti-dilutive. The following table summarizes the shares of common stock underlying the Company’s unvested time-vested stock awards and performance awards that were excluded from the calculation of dilutive securities: Three months ended September 30, Nine months ended September 30, (in thousands) 2025 2024 2025 2024 Time-vested stock awards — 36 1 36 Performance awards — 30 19 30 Share Repurchases During the nine months ended September 30, 2025, the Company repurchased 20,504 shares of stock, for approximately $ 2.7 million, from its employees to satisfy tax obligations on shares vested under the LTIP. During the nine months ended September 30, 2024, the Company repurchased 36,397 shares of stock, for approximately $ 5.9 million, from its employees to satisfy tax obligations on shares vested under the LTIP. On July 30, 2025, the Company announced that its Board of Directors had approved a new $ 75.0 million share repurchase program (the "Repurchase Program"). The Repurchase Program will expire on February 4, 2026, or when the authorized funds are exhausted, whichever is earlier. The Repurchase Program replaced and superseded the Company’s prior $ 75.0 million repurchase program, under which the Company had exhausted substantially all of the available funds, and such prior repurchase program was terminated. As of September 30, 2025, the Company had $ 75.0 million of funds available to repurchase shares of the Company’s common stock under the Repurchase Program. During the nine months ended September 30, 2025, the Company repurchased 639,207 shares of its common stock under the prior share repurchase program, at a weighted-average price of $ 117.33 per share. 21 Table of Contents