MYR : Fourth Quarter 2023 Investor Presentation (2024)

MYR GROUP INC. - A MARKET LEADER IN

ELECTRICAL CONSTRUCTION

QUALITY SOLUTIONS FOR INCREASED ELECTRIFICATION

: MYRG SINCE 2008

CONTINUED GROWTH

Healthy organic and acquisitive growth

OFFICE LOCATIONS

65+

SUPERIOR SAFETY CULTURE

Performance that exceeds industry standards; 2023 stats: TCIR - 1.13 LTIR - 0.14

ESSENTIAL CLEAN ENERGY CONTRACTOR

Providing superior electrical infrastructure services that support the clean energy transformation

STRONG FINANCIALS

Growing revenue, strong backlog, and stable balance sheet to support projects of any magnitude

EXTENSIVE RESOURCES & EXPERTISE

Dedicated workforce of 9,000+ employees and one of the largest centralized, specialized fleet in the industry

LONG-STANDINGCUSTOMERS

Established client relationships and alliance partnerships across the U.S. and Canada, some held for 50+ years

EXPERIENCED LEADERSHIP

Executive team that averages more than 28 years of industry experience

RANKED AMONG TOP 5

U.S. SPECIALTY

ELECTRICAL CONTRACTORS

28 YEARS IN A ROW

Achieved record revenue in 2023, up 21% from 2022

$3.64B

2023

$3.01B

2022

$2.50B

2021

$2.25B

2020

$2.07B

2019

$1.53B

T&D Revenue

STRONG LONG-TERM DRIVERS

T&D MARKET OUTLOOK

Actual and Projected Transmission Investment of Investor-Owned Electric Companies

Investor-owned electric companies spent $26.7 billion on transmission investment in 2022, compared to $25.1 billion in 2021 (in nominal dollars), and are planning to invest approximately $121 billion on transmission construction between 2023 and 2026.

Source: Edison Electric Institute, updated January 2024

U.S. and Canadian Electric Distribution Actual and Forecasted Capital Expenditures

"Overall, distribution spend increased 7% in 2022 over 2021. Investor-owned utility spend

increased by 9.1%."

• The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) will invest significantly in our nation's infrastructure over the next decade, including $73 billion for the electric grid and energy infrastructure. So far, more than $400 billion of the total funding has been announced. (whitehouse.gov, Nov. 2023)
• Between the IIJA and Inflation Reduction Act (IRA), combined federal spending planned for energy over the next 5-10 years is more than $300 billion. (Brookings.edu, Feb. 1, 2023)
• The DOE has acknowledged U.S. transmission systems need to grow significantly - by 60% by 2030 and may need to triple by 2050 - to meet clean electricity demands. (energy.gov, May and June 2023)

INVESTMENT DRIVERS

System Reliability & Resiliency Programs

Aging Electric Grid

Connecting Clean Energy Sources

Plant Retirements

System Hardening

Electrification

Data Centers

Distributed Energy Resources

ACTIVE MARKET DRIVERS

C&I MARKET OUTLOOK

MYR Group's C&I segment sees steady bidding opportunities in our core markets and we continue to be well diversified.

MYR GROUP CORE C&I MARKETS

Healthcare

Data Centers

Airport Projects

Transportation

Clean Energy & EV Charging

E-Commerce

Water/Wastewater Facilities

Industrial Facilities

Source: The Dodge Momentum Index, January 8, 2024

• Infrastructure Investment and Jobs Act funding is expected to continue driving growth in infrastructure construction categories including highways, bridges and public works. More than $400 billion in funding has been announced by federal agencies so far. (whitehouse.gov, Nov. 2023)
• The American Institute of Architects reported a 45.4 reading in their December
  Architecture Billings Index, showing "soft" business conditions remained. Billings at architecture firms declined eight months of 2023, however project inquiries grew eleven months of the year. (aia.org, Jan. 2024)
• The Dodge Momentum Index improved to 186.6 (2000=100) in December, up 3% since November. Hotel and data center planning drove the commercial index component up, and
  "stronger health and public building planning" spurred institutional momentum. Dodge said the substantive queue of planned projects "will support construction spending going into 2025." (construction.com, Jan. 2024)
• The Associated Builders and Contractors Association's Construction Backlog Indicator inched up to 8.6 in December from the previous month but remained down 0.6 months from December 2022. The ABC's Construction Confidence Index rose in all three categories
  (sales, profit margin and staffing level expectations). All three measures of confidence were above 50, indicating growth expectations for the next six months. (ABC.org, Jan. 2024)

The generation mix across the U.S. and Canada is changing as traditional baseload generation resources retire and clean energy provides an increasingly large percentage of demand.

UTILITY-SCALE SOLAR

By 2050 solar is expected to be the largest source of generating capacity on the U.S. grid. The utility-scale solar sector continued its growth trajectory with 4 GWdc of installations in Q3 2023, its strongest third quarter on record. The sector achieved 58% growth compared to Q3 2022. Though strict environmental regulations, labor shortages, and bottlenecks for equipment procurement have increased lead times, impacting near-team project development, Wood Mackenzie forecasts that utility-scale solar installations will total 171 GWdc between 2023-2028, a 1% increase compared to their last forecast. (seia.org, Dec. 7, 2023)

SOURCE: SEIA/Wood Mackenzie Power & Renewables U.S. Solar Market Insight Report, Dec. 7, 2023

• The Inflation Reduction Act's clean energy tax credits could help triple U.S. renewable energy capacity in
  10 years according to Wood Mackenzie. (Reuters.com, Sept. 2023)
• Energy storage will also get a boost from IRA tax credits. Utility-scale battery storage capacity is expected to nearly quadruple in the next three years. (Utility Dive/eia, Jan. 13, 2023)
• The Energy Information Administration (EIA) anticipates more than 36 GW of new solar capacity will come online in 2024 and roughly 43 GW in 2025. (eia.gov, January 2024)
• According to the EIA, solar is expected to generate 14% more electricity than hydroelectric facilities next year, thanks to the growth of new utility-scale and small-scale solar facilities. If solar energy performs as forecasted in 2024, it will be the first time in the U.S. that solar has annually generated more electricity than hydropower. (utilitydive.com, Nov. 2023)
• The National Electric Vehicle Infrastructure (NEVI) program will provide $5 billion over five years to create a network of EV charging stations across the states. $46.5 million in new funding for EV charging was announced in January 2024, on top of nearly $150 million in announced grant funding so far under NEVI. (driveelectric.gov, January 2024)

CLEAN ENERGY DRIVERS

Federal Tax Credits

Renewable Portfolio Standards

Carbon Policy

State Tax Incentives

Clean Power Portfolios

Customer Demand for Clean Power