Electrical C&I, Utility T&D Gaining Momentum; Stay Hold On Valuation

研报英文原文证据摘录

Electrical C&I, Utility T&D Gaining Momentum; Stay Hold On Valuation

wins assumed 2H27 at the *Adj EPS

earliest, with financial impact likely not until FY28.

C&I well-diversified with momentum across end-markets now including Valley acquisition. Exhibit 1 - DMI Slows 1.9% In June Led By

Adding ~900 employees (at ~8-9x EBITDA) vs MYRG total 8,500+ is significant in markets in which Commercial Down -6.8%

skilled electrical labor is commanding premiums. View the transaction as an efficient way for MYRG 330310 304.8

to gain further scale and expand geographic footprint out west at an attractive price and also 290 294.7 291

280.4 280 277.4 277.1271.7 270 269.8consistent with MYRG’s pure-electrical strategy. 260.4

250 246.2248.8

223.9220.9

210.9See MYRG as more acquisitive yet still disciplined with B/S capacity. Net leverage at only 0.04x 230210 232.1

as of March and $163Mn cash balance (pre-Valley $328Mn acquisition), see MYRG increasingly 190 203.1203.5

evaluating strategic acquisitions. See SMID E&C companies like MYRG opportunistically grow . Source: Jefferies LLC, DMI

the business via strategic acquisitions, offering another lever for estimate revisions End-market

tailwinds are driving demand for craft services in an increasingly tight labor backdrop, particularly

in the competitive C&I segment (data centers).

Lower PT to $392 (from $449) as Valley contribution more than offset by m2m peer multiple

compression and now based on FY28. Our PT implies 13x FY28 EV/EBITDA and 23.8x FY28 P/E. Julien Dumoulin-Smith * | Equity Analyst

This compares to FY28 T&D peer median EV/EBITDA and P/E at 12.3x and 21.2x, C&I at 16.5x and +1 (281) 774-2066 | jds@jefferies.com

23.8x.