MYR GROUP INC.MYRG
MYR GROUP INC. Leases Disclosure
Lease Obligations
From time to time, the Company enters into noncancelable 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 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 December 31, 2025 and 2024, 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.
The following is a summary of the lease-related assets and liabilities recorded:
| December 31, 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 | $ | 42,448 | $ | 42,648 | |||||||||||||||
Finance lease right-of-use assets | 1,910 | 3,215 | ||||||||||||||||||
Total right-of-use lease assets | $ | 44,358 | $ | 45,863 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
Operating lease obligations | Current portion of operating lease obligations | $ | 13,019 | $ | 12,141 | |||||||||||||||
Finance lease obligations | Current portion of finance lease obligations | 804 | 1,046 | |||||||||||||||||
Total current obligations | 13,823 | 13,187 | ||||||||||||||||||
| Non-current | ||||||||||||||||||||
Operating lease obligations | Operating lease obligations, net of current maturities | 29,429 | 30,496 | |||||||||||||||||
Finance lease obligations | Finance lease obligations, net of current maturities | 1,220 | 1,930 | |||||||||||||||||
Total non-current obligations | 30,649 | 32,426 | ||||||||||||||||||
Total lease obligations | $ | 44,472 | $ | 45,613 | ||||||||||||||||
The following is a summary of the lease terms and discount rates:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Weighted-average remaining lease term – finance leases | 2.5 years | 3.3 years | ||||||||||||
| Weighted-average remaining lease term – operating leases | 3.7 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:
| Year ended December 31, | ||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Lease cost: | ||||||||||||||||||||
| Finance lease cost: | ||||||||||||||||||||
| Amortization of right-of-use assets | $ | 973 | $ | 968 | $ | 791 | ||||||||||||||
| Interest on lease liabilities | 97 | 101 | 83 | |||||||||||||||||
| Operating lease cost | 18,360 | 15,621 | 14,302 | |||||||||||||||||
| Variable lease costs | 447 | 385 | 353 | |||||||||||||||||
| Total lease cost | $ | 19,877 | $ | 17,075 | $ | 15,529 | ||||||||||||||
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
| Year ended December 31, | ||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Other information: | ||||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
| Operating cash flows used for operating leases | $ | 18,324 | $ | 15,025 | $ | 14,519 | ||||||||||||||
| Right-of-use asset obtained in exchange for new operating lease obligations | $ | 16,172 | $ | 19,264 | $ | 11,039 | ||||||||||||||
| Right-of-use asset obtained in exchange for new finance lease obligations | $ | — | $ | 3,226 | $ | — | ||||||||||||||
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under current portion of operating lease obligations and operating lease obligations, net of current maturities, as of December 31, 2025 were as follows:
| (in thousands) | Finance Lease Obligations | Operating Lease Obligations | Total Lease Obligations | |||||||||||||||||
| 2026 | $ | 869 | $ | 17,625 | $ | 18,494 | ||||||||||||||
| 2027 | 868 | 11,740 | 12,608 | |||||||||||||||||
| 2028 | 388 | 9,540 | 9,928 | |||||||||||||||||
| 2029 | — | 6,403 | 6,403 | |||||||||||||||||
| 2030 | — | 2,530 | 2,530 | |||||||||||||||||
| Thereafter | — | 1,948 | 1,948 | |||||||||||||||||
| Total minimum lease payments | 2,125 | 49,786 | 51,911 | |||||||||||||||||
| Financing component | (101) | (7,338) | (7,439) | |||||||||||||||||
| Net present value of minimum lease payments | 2,024 | 42,448 | 44,472 | |||||||||||||||||
| Less: current portion of operating lease obligations | (804) | (13,019) | (13,823) | |||||||||||||||||
| Long-term operating lease obligations | $ | 1,220 | $ | 29,429 | $ | 30,649 | ||||||||||||||
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 market rental rates. Lease expense associated with these leases was $2.6 million, $2.5 million and $2.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the minimum lease payments required under these leases totaled $7.2 million, which are due over the next 3.7 years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Mar 4, 2020 | |
| 2018 | Mar 6, 2019 | |
| 2017 | Mar 7, 2018 | |
| 2016 | Mar 9, 2017 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.