Electrical construction and infrastructure services provider MYR Group (NASDAQ:MYRG) beat Wall Street's revenue expectations in Q3 2026, with revenue up 32.5% year on year to $1.26 billion. Its GAAP profit of $3.82 per share was 30.1% above analysts' consensus estimates.
For more on MYR Group, read our full research report .
MYR Group (MYRG) Q3 2026 highlights:
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Revenue$1.26 billion vs S&P analysts' consensus estimates of $1.16 billion (32.5% year-on-year growth, 8.9% beat)
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EPS (GAAP)$3.82 vs analysts' consensus estimates of $2.94 (30.1% beat)
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Adjusted EBITDA$110 million vs analysts' consensus estimates of $89.69 million (8.7% margin, 22.6% beat)
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Operating margin6.8%, up from 4.9% in the same quarter last year
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Free cash flow margin0.7%, down from 6.9% in the same quarter last year
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Backlog$3.68 billion at quarter end, up 38.3% year on year
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Market capitalization$4.15 billion
Management CommentsRick Swartz, MYR's president and CEO, said, "Our strong third-quarter results demonstrate the momentum across our business and the strength of our execution. We delivered record quarterly revenues of $1.26 billion, net income of $60.0 million, and EBITDA of $110.0 million, supported by increased activity across both our T&D and C&I segments, including record quarterly C&I revenues. Through the first nine months of 2026, revenues reached $3.34 billion, reflecting healthy demand across our core markets and continued investment in critical electrical infrastructure. As we integrate Valley Electric and Comet Electric and expand our capabilities and geographic reach, we remain focused on disciplined execution, strengthening our customer relationships, and positioning MYR to capitalize on the significant infrastructure opportunities ahead."
Revenue growth
Reviewing a company's long-term revenue performance reveals insights into its quality. Even a poor business can perform well for one or two quarters, but a high-quality one grows for years. Over the last five years, MYR Group grew its revenue at a strong 11.9% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. MYR Group's annualized revenue growth of 10.5% over the last two years is below its five-year trend, but the results still suggest healthy demand.
MYR Group also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. MYR Group's backlog reached $3.68 billion in the latest quarter and averaged 11.6% year-on-year growth over the last two years. This growth was in line with revenue growth, indicating that the company effectively balanced new order intake and fulfillment.
This quarter, MYR Group reported strong year-on-year revenue growth of 32.5%, and its $1.26 billion of revenue exceeded Wall Street's consensus estimates by 8.9%.
Looking ahead, sell-side analysts expect revenue to grow 13.8% over the next 12 months, according to S&P, an improvement versus the last two years. This strong projection indicates its newer products and services will drive faster revenue growth.
Operating margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products and, most importantly, keeping them relevant through research and development.
MYR Group was profitable over the last five years but held back by its large cost base. Its average operating margin of 4% was weak for an industrials business. That outcome is unsurprising given its low gross margin baseline.
On the positive side, MYR Group's operating margin rose by 2.2 percentage points over the last five years, as its revenue growth gave it operating leverage.
In Q3, MYR Group generated an operating margin of 6.8%, up 1.9 percentage points year on year. The increase was a positive sign, and operating margin rose more than gross margin, indicating greater efficiency in expenses such as marketing, R&D and administrative overhead.
Earnings per share
Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.
MYR Group's EPS grew at a 20.6% compounded annual growth rate over the last five years, higher than its 11.9% annualized revenue growth. This shows the company became more profitable on a per-share basis as it expanded.
A closer look at MYR Group's earnings quality helps explain the drivers of its performance. As mentioned earlier, MYR Group's operating margin expanded by 2.2 percentage points over the last five years. On top of that, its share count shrank by 8.4%. These are positive signs for shareholders because improving profitability and share buybacks boost EPS growth relative to revenue growth.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For MYR Group, its two-year annual EPS growth of 132% was higher than its five-year trend. That acceleration is a positive sign, particularly given the already high base.
In Q3, MYR Group reported EPS of $3.82, up from $2.05 in the same quarter last year. This easily cleared analysts' consensus estimates, a positive result for shareholders. Over the next 12 months, Wall Street expects MYR Group's full-year EPS to grow 7.4% from $12.31 to $13.22, according to S&P.
Key takeaways from MYR Group's Q3 results
MYR Group's wide EBITDA beat and EPS above analysts' consensus estimates made for a strong quarter. Shares soared 10.4% to $309.11 immediately after the results.
MYR Group had a solid quarter, but assessing the stock requires a broader view. When making that decision, it's important to consider its valuation, business quality and latest quarterly results. For more on MYR Group, read our free full research report here .
