MYR Group to Acquire Valley Holdings for Approximately $328M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
MYR Group announced that it has entered into a definitive agreement to acquire all issued and outstanding shares of capital stock of Valley Holdings, Inc. and its subsidiaries, including Valley Electric and Comet Electric and their respective affiliates, for consideration of approximately $328M, subject to net asset and other post-closing purchase price adjustments. The company expects to fund the acquisition through a combination of cash on hand and borrowings under its revolving credit facility. Over the last two years, the combined average annual revenues of Valley Electric and Comet Electric were in excess of $400M. The transaction has been approved by the seller and the board of directors of MYR Group and is expected to close on or about July 1, subject to receiving required regulatory approvals and the satisfaction of other customary closing conditions.
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Analyst Views on MYRG
Wall Street analysts forecast MYRG stock price to fall
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 478.930
Low
237.00
Averages
266.00
High
295.00
Current: 478.930
Low
237.00
Averages
266.00
High
295.00
About MYRG
MYR Group Inc. is a holding company. The Company, through its subsidiaries, provides specialty electrical construction services, which serve the electric utility infrastructure, commercial and industrial construction markets. It operates through two electrical contracting service segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I). Its T&D segment provides services on electric transmission and distribution networks, substation facilities, which include design, engineering, procurement, construction, upgrade and maintenance and repair services, with a focus on construction, maintenance and repair. It also provides restoration services in response to hurricanes, ice storms or other storm related events. Its C&I segment provides services including design, installation, maintenance and repair of commercial and industrial wiring, the installation of intelligent transportation systems, roadway lighting, signalization and electric vehicle charging infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MYR Group Acquires Valley Holdings for $328M
- Acquisition Scale: MYR Group announced its agreement to acquire Valley Holdings and its subsidiaries, including Valley Electric and Comet Electric, for approximately $328 million, further solidifying its position in the electrical contracting market.
- Market Leadership: Valley Electric is one of the largest full-service electrical contractors in the western U.S., with combined average annual revenues exceeding $400 million over the past two years, indicating strong market demand and business potential.
- Business Expansion Strategy: The acquisition is expected to enhance MYR Group's commercial and industrial service capabilities, expand its geographic reach, and provide additional services to both new and existing customers, thereby improving market competitiveness.
- Management Outlook: MYR Group President and CEO Rick Swartz stated that this acquisition will further strengthen the company's market position, reflecting confidence in future growth and strategic planning.
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- Improved Profitability Across Divisions: The Transmission & Distribution (T&D) operating income margin rose to 9.7% from 7.8%, while the Commercial & Industrial (C&I) margin increased from 4.7% to 8.1%, demonstrating significant profitability improvements across all business segments.
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- Record Net Income: The first quarter net income reached $47 million, with a diluted earnings per share of $2.99, indicating the company's success in cost control and operational efficiency, which enhances investor confidence.
- Historic Backlog: As of March 31, 2026, total backlog hit a record $2.84 billion, with $981 million in the T&D segment and $1.86 billion in the C&I segment, indicating substantial future growth potential.
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See More
MYR Group Acquires Valley Holdings for $328M
- Acquisition Scale: MYR Group announced its agreement to acquire Valley Holdings and its subsidiaries, including Valley Electric and Comet Electric, for approximately $328 million, further solidifying its position in the electrical contracting market.
- Market Leadership: Valley Electric is one of the largest full-service electrical contractors in the western U.S., with combined average annual revenues exceeding $400 million over the past two years, indicating strong market demand and business potential.
- Business Expansion Strategy: The acquisition is expected to enhance MYR Group's commercial and industrial service capabilities, expand its geographic reach, and provide additional services to both new and existing customers, thereby improving market competitiveness.
- Management Outlook: MYR Group President and CEO Rick Swartz stated that this acquisition will further strengthen the company's market position, reflecting confidence in future growth and strategic planning.
See More
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- ABM Company Risks: ABM Industries, with a market cap of $2.28 billion, has seen organic revenue growth fall short over the past two years, indicating a need for improvements in products, pricing, or go-to-market strategies, while its annual EPS decline of 2.4% raises concerns about future stock performance.
- Cash Flow Pressure: With a free cash flow margin of only 1.9% over the last five years, ABM faces constraints in self-funding growth or returning capital to shareholders, increasing investment risks.
- PAR Technology Challenges: PAR Technology, valued at $606.7 million, is experiencing significant cash burn, leading to negative returns on capital and a forward P/E ratio of 20, suggesting investors should proceed with caution.
- MYR Group Outlook: MYR Group, with a market cap of $6.86 billion, boasts a 32.6% growth in EPS over the past two years and a 4.5 percentage point increase in free cash flow margin, indicating strong growth potential in the electrical construction sector, making it a stock to watch.
See More
MYR Group (MYRG) Q3 2025 Earnings Transcript
See More
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See More
MYR Group Shares Surge 5% After Strong Q1 2026 Financial Results
- Strong Financial Performance: MYR Group's gross margin increased to 13.4% in Q1 2026 from 11.6% a year earlier, driven by undertaking more high-margin projects and better-than-expected productivity, indicating enhanced competitiveness in the market.
- Improved Profitability Across Divisions: The Transmission & Distribution (T&D) operating income margin rose to 9.7% from 7.8%, while the Commercial & Industrial (C&I) margin increased from 4.7% to 8.1%, demonstrating significant profitability improvements across all business segments.
- Positive Market Reaction: Despite MYR Group's stock being quite volatile with 17 moves greater than 5% in the past year, today's 5% increase indicates a positive market response to the earnings report, although it does not fundamentally alter perceptions of the company's business.
- Significant Investment Returns: MYR Group's stock has surged 90% since the beginning of the year, reaching a new 52-week high of $430.79 per share, with investors who bought $1,000 worth of shares five years ago now seeing their investment grow to $5,295, reflecting the company's strong long-term growth potential.
See More
MYR Group Reports Record Q1 2026 Earnings with Increased Margin Targets
- Significant Revenue Growth: MYR Group reported Q1 2026 revenues of $1 billion, reflecting a $167 million increase or 20% year-over-year, demonstrating strong performance in infrastructure investment and customer relationship expansion, thereby solidifying its market position.
- Record Net Income: The first quarter net income reached $47 million, with a diluted earnings per share of $2.99, indicating the company's success in cost control and operational efficiency, which enhances investor confidence.
- Historic Backlog: As of March 31, 2026, total backlog hit a record $2.84 billion, with $981 million in the T&D segment and $1.86 billion in the C&I segment, indicating substantial future growth potential.
- Increased Margin Expectations: Management raised margin targets for C&I and T&D to 6%-9% and 8%-11%, respectively, forecasting approximately 12% overall revenue growth for 2026, reflecting a positive outlook on future market demand.
See More
