MYR GROUP INC.MYRG
MYR GROUP INC. Revenue Disclosure
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.
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 to four 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 16–Segment Information to the Financial Statements.
The components of the Company’s revenue by contract type were as follows for the year ended December 31:
| 2025 | ||||||||||||||||||||||||||||||||||||||
| T&D | C&I | Total | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||
| Fixed price | $ | 686,859 | 34.3 | % | $ | 1,398,310 | 84.5 | % | $ | 2,085,169 | 57.0 | % | ||||||||||||||||||||||||||
| Unit price | 741,812 | 37.0 | 74,164 | 4.5 | 815,976 | 22.3 | ||||||||||||||||||||||||||||||||
T&E(1) | 573,769 | 28.7 | 182,975 | 11.0 | 756,744 | 20.7 | ||||||||||||||||||||||||||||||||
| $ | 2,002,440 | 100.0 | % | $ | 1,655,449 | 100.0 | % | $ | 3,657,889 | 100.0 | % | |||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||||||||
| T&D | C&I | Total | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||
| Fixed price | $ | 824,643 | 43.9 | % | $ | 1,202,653 | 81.2 | % | $ | 2,027,296 | 60.3 | % | ||||||||||||||||||||||||||
| Unit price | 596,089 | 31.7 | 80,507 | 5.4 | 676,596 | 20.1 | ||||||||||||||||||||||||||||||||
T&E(1) | 459,769 | 24.4 | 198,629 | 13.4 | 658,398 | 19.6 | ||||||||||||||||||||||||||||||||
| $ | 1,880,501 | 100.0 | % | $ | 1,481,789 | 100.0 | % | $ | 3,362,290 | 100.0 | % | |||||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||||||||
| T&D | C&I | Total | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||
| Fixed price | $ | 1,100,273 | 52.7 | % | $ | 1,274,763 | 82.0 | % | $ | 2,375,036 | 65.2 | % | ||||||||||||||||||||||||||
| Unit price | 549,221 | 26.3 | 92,581 | 6.0 | 641,802 | 17.6 | ||||||||||||||||||||||||||||||||
T&E(1) | 439,702 | 21.0 | 187,365 | 12.0 | 627,067 | 17.2 | ||||||||||||||||||||||||||||||||
| $ | 2,089,196 | 100.0 | % | $ | 1,554,709 | 100.0 | % | $ | 3,643,905 | 100.0 | % | |||||||||||||||||||||||||||
(1) The Company T&E contract type includes time-and-equipment, time-and-materials and cost-plus contracts.
The components of the Company’s revenue by market type were as follows for the year ended December 31:
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Segment | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||||||||
| Transmission | T&D | $ | 1,198,584 | 32.8 | % | $ | 1,139,848 | 33.9 | % | $ | 1,380,923 | 37.9 | % | |||||||||||||||||||||||||||||||
| Distribution | T&D | 803,856 | 22.0 | 740,653 | 22.0 | 708,273 | 19.4 | |||||||||||||||||||||||||||||||||||||
| Electrical construction | C&I | 1,655,449 | 45.2 | 1,481,789 | 44.1 | 1,554,709 | 42.7 | |||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 3,657,889 | 100.0 | % | $ | 3,362,290 | 100.0 | % | $ | 3,643,905 | 100.0 | % | ||||||||||||||||||||||||||||||||
Remaining Performance Obligations
On December 31, 2025, the Company had $2.52 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 total amount of remaining performance obligations as of December 31, 2025 that the Company expects to be realized, 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 as of December 31, 2025 | ||||||||||||||||||||
| (in thousands) | Total | Amount estimated to be recognized within 12 months | Amount estimated to be recognized after 12 months | |||||||||||||||||
| T&D | $ | 720,658 | $ | 653,955 | $ | 66,703 | ||||||||||||||
| C&I | 1,795,290 | 1,475,490 | 319,800 | |||||||||||||||||
| Total | $ | 2,515,948 | $ | 2,129,445 | $ | 386,503 | ||||||||||||||
The Company estimates approximately 95% or more of the remaining performance obligations will be recognized within twenty-four months, including approximately 85% 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 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report.
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 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.