MYR Group 2026年第三季法說會：營收創新高與2027年成長展望

MYR Group (NASDAQ: MYRG) 公布 2026 年第三季營收、淨利、EBITDA 及在手訂單金額均創歷史新高。成長主要由商業與工業 (C&I) 部門帶動，包括 Valley Electric 和 Comet Electric 的貢獻；同時，專案生產力提升及有利的結案結算支撐了利潤率上升。

主要重點

• 在 C&I 營收成長 58% 及輸配電 (T&D) 營收成長 10% 的推動下，營收年增 32% 至創紀錄的 12.6 億美元。
• 淨利自 3,200 萬美元增至創紀錄的 6,000 萬美元，稀釋每股盈餘 (EPS) 成長 86% 至 3.82 美元。
• 毛利率自 11.8% 擴增至 13.6%，主要歸功於優於預期的生產力及有利的專案結算，惟部分被專案效率低下所抵銷。
• 在手訂單（Backlog）達創紀錄的 36.8 億美元，年增 38%，其中包括 C&I 的 23.9 億美元及 T&D 的 12.9 億美元。
• 管理層預計 2027 年 C&I 營收成長率為 18%–22%，T&D 為 10%–13%，隱含公司整體成長率約為 15%–18%。
• 受請款與付款時程影響，營業現金流自 9,600 萬美元降至 4,600 萬美元；管理層並指出客戶付款條件為持續面臨的營運資金阻力。

重要財務數據

業務與營運表現

商業與工業

C&I 營收達到創紀錄的 7.04 億美元。該成長反映了固定價格合約營收的增加，其中包括 7 月 1 日收購的 Valley Electric 和 Comet Electric 的貢獻。

C&I 營業利益率自 6.4% 上升至 8.7%。即將完工專案的生產力優於預期推動了此項改善，惟部分被專案效率低下以及額外的 490 萬美元收購相關無形資產攤銷所抵銷。

管理層表示，Valley Electric 與 Comet Electric 的表現符合預期。新簽合約包括紐澤西州的倉儲工程、科羅拉多州的資料中心與機場交通專案、加州的輕軌延伸工程、市政與資料中心工程，以及西雅圖的廢水處理工程。

輸配電

在點工計時、固定價格及單價合約活動增加的支撐下，T&D 營收成長 10% 至 5.55 億美元。主服務協定 (MSA) 約占該部門營收的 65%。

T&D 營業利益率自 8.2% 改善至 9.3%，反映了生產力提升及有利的專案結算，惟部分被特定專案的效率低下所抵銷。

得標專案包括印第安納州、維吉尼亞州及愛荷華州的輸電專案；新墨西哥州與華盛頓州的變電所工程；德州的輸電線路重建工程；以及麻薩諸塞州的 345 kV 線路重建工程。管理層引用公用事業資本支出、基礎設施老化、負載成長及韌性計畫作為支撐需求的驅動因素。

管理層展望

管理層對 2027 年提出以下預期：

• C&I 營收成長率為 18%–22%，包含 Valley Electric 與 Comet Electric 的全年貢獻及其持續成長。
• T&D 營收成長率為 10%–13%，預計未來兩季成長將維持較為溫和，之後自第二季起加速，並更加集中於 2027 年下半年。
• 公司總營收成長率約為 15%–18%。
• C&I 營業利益率接近其 6%–9% 目標區間的高段。
• T&D 營業利益率位於其 8%–11% 目標區間的中段附近。
• 資本支出占營收比重落在 3% 的中低段，以支持 T&D 擴張及對 C&I 預製化的持續投資。

管理層預計部分較大型的 T&D 專案將於 2027 年中後期啟動，並預期 2028 年及往後將迎來更顯著的大型專案成長。C&I 客戶正就延伸至 2029 年與 2030 年的專案進行討論，以確保取得勞動力與材料。

風險與觀察重點

• 利潤率提升受益於有利的結算以及部分即將完工專案的強勁生產力，而其他專案的效率低下仍是抵銷因素。
• 儘管獲利成長，營業現金流與自由現金流仍有所下降。管理層表示，高利率使得付款條件在客戶與合約談判中成為更顯著的一環。
• 各期之間的在手訂單可能分佈不均，且可能無法涵蓋客戶正在討論的所有潛在專案。
• T&D 的成長預計將集中於 2027 年下半年，而較大型專案活動預計要到更晚的時期才會帶來顯著貢獻。
• Valley Electric 與 Comet Electric 在未來略多於兩年的時間內完成現有在手訂單時，將繼續產生與收購相關的攤銷。

分析師問答亮點

管理層將 C&I 利潤率的強勁表現歸因於廣泛的執行力、有利的結算及改善的合約條件，而非特定終端市場或地區。管理層預計該部門 2027 年的利潤率將維持在其歷史利潤率區間的高段附近。

在 T&D 方面，管理層表示近期成長應主要來自公用事業資本支出、主服務協定以及中小型專案。大型高壓專案預計將自 2027 年底，特別是 2028 年起成為更重要的驅動因素。

兩個部門的收購案源（pipeline）依然活躍。管理層指出，C&I 業務的私募市場估值倍數通常約為 8 至 10 倍，而 T&D 資產視品質與成長性而定，可能獲得更高的倍數。公司仍專注於 C&I 的電機服務，而 T&D 收購則可能包含配套服務。

MYR Group 亦授權實施於 2026 年 11 月 4 日生效的新 1 億美元股票回購計畫。管理層表示，回購將與有機投資及收購同步進行，並保持適時與彈性。

法說會逐字稿全文

---

完整財報電話會議逐字稿

管理層陳述

Operator

Good morning, everyone, and welcome to the MYR Group Third Quarter 2026 Earnings Results Conference Call.

[Operator Instructions] Today's conference is being recorded.

I will now turn the call over to Jennifer Harper, Vice President of Investor Relations and Treasurer, for introductory remarks.

Jennifer Harper

Thank you, and good morning, everyone. I would like to welcome you to the MYR Group conference call to discuss the company's third quarter results for 2026, which were reported yesterday.

Joining us on today's call are Rick Swartz, President and Chief Executive Officer; Kelly Huntington, Senior Vice President and Chief Financial Officer; Brian Stern, Senior Vice President and Chief Operating Officer of MYR Group's Transmission and Distribution segment; and Don Egan, Senior Vice President and Chief Operating Officer of MYR Group's Commercial and Industrial segment. A copy of yesterday's press release announcing our third quarter results can be found on the MYR Group website at myrgroup.com under the Investors tab.

Please note, today's discussion may contain forward-looking statements. Any such statements are based upon information available to MYR Group's management as of this date, and MYR Group assumes no obligation to update any such forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these statements are no guarantee of future performance. For more information, please refer to the risk factors discussed in the company's most recently filed annual report on Form 10-K.

Certain non-GAAP financial measures will also be presented. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in yesterday's press release.

With that, let me turn the call over to Rick Swartz.

Richard Swartz

Thanks, Jennifer. Good morning, everyone. Welcome to our third quarter 2026 conference call to discuss financial and operational results. I will begin by providing a summary of the third quarter performance before turning the call over to Kelly Huntington for a detailed financial review. Following Kelly's remarks, Brian Stern and Don Egan, will provide updates on our T&D and C&I segments, including recent performance and market opportunities. I will then return with some closing comments before opening the call up for your questions.

Our third quarter results reflect the strength of our business, the benefits of disciplined execution and the continued demand for services we provide. Investments in electrical infrastructure, grid modernization and electrification continue to create opportunities across the markets we serve. The additions of Valley Electric and Comet Electric have expanded our capabilities, geographic reach and customer relationships, further strengthening our platform for long-term growth. As we move forward, we remain focused on serving our customers, executing projects safely and efficiently and creating value for our shareholders.

Our success is driven by the dedication and expertise of our employees across the organization. Their commitment to safety, quality and operational excellence enables us to consistently deliver for our customers and position the company to capitalize on future opportunities. I want to thank our team for their continued hard work and contributions to our success.

I will now turn the call over to Kelly to review our third quarter 2026 financial results.

Kelly Huntington

Thank you, Rick, and good morning, everyone. Our third quarter 2026 revenues were a record $1.26 billion, which represents an increase of $309 million or 32% compared to the same period last year. Our third quarter C&I revenues were $704 million, a record high for our C&I segment and an increase of 58% compared to the same period last year. C&I revenues increased primarily due to an increase in revenue on fixed price contracts which included incremental revenues from the Valley and Comet acquisition.

T&D revenues were $555 million, an increase of 10% compared to the same period last year. T&D revenues increased due to higher revenue on T&E, fixed price and unit price contracts. Work performed under master service agreements represented approximately 65% of our T&D revenue. Our gross margin was 13.6% for the third quarter of 2026 compared to 11.8% for the same period last year. The increase in gross margin was primarily due to significant changes in our estimated gross profit on certain projects related to better-than-anticipated productivity and favorable job closeout.

Gross margin was also positively impacted by the continued benefit of higher margins on certain projects nearing completion, largely due to better-than-anticipated productivity. These margin increases were partially offset by an increase in costs associated with inefficiencies on certain projects. T&D operating income margin was 9.3% for the third quarter of 2026 compared to 8.2% for the same period last year. The increase was primarily related to better-than-anticipated productivity and a favorable job closeout, partially offset by an increase in costs associated with inefficiencies on certain projects.

C&I operating income margin was 8.7% for the third quarter of 2026 compared to 6.4% for the same period last year. The increase was primarily related to better-than-anticipated productivity on certain projects, most of which are nearing completion, partially offset by an increase in costs associated with inefficiencies on certain projects. C&I operating income margin was partially offset by an additional $4.9 million of amortization expense related to certain intangibles acquired with Valley and Comet.

Third quarter 2026 SG&A expenses were $82 million, an increase of approximately $16 million compared to the same period last year. The increase was primarily due to SG&A expenses associated with Valley and Comet, which were acquired on July 1 and increases in employee incentive compensation costs and employee-related expenses to support future growth.

Our third quarter effective tax rate was 27.1% compared to 28.3% for the same period last year. The decrease was primarily due to a favorable impact from state taxes, partially offset by higher U.S. taxes on Canadian income, other permanent difference items and a reduction in foreign tax credits. Third quarter 2026 net income was a record $60 million compared to net income of $32 million for the same period last year. Net income per diluted share of $3.82 increased 86% compared to $2.05 for the same period last year.

Third quarter 2026 EBITDA was a record $110 million compared to $63 million for the same period last year. Total backlog as of September 30, 2026, was a record $3.68 billion, 38% higher than a year ago. Total backlog as of September 30, 2026, consisted of $1.29 billion for our T&D segment and $2.39 billion for our C&I segment.

Third quarter 2026 operating cash flow was $46 million compared to operating cash flow of $96 million for the same period last year. The decrease in cash provided by operating activities was primarily due to the timing of billings and payments associated with project starts and completions. Third quarter 2026 free cash flow was $9 million compared to free cash flow of $65 million for the same period last year. The decrease was due to the decrease in operating cash flow and higher capital expenditures to support future growth.

Moving to liquidity and our balance sheet. We had approximately $298 million of working capital, $216 million of funded debt and $650 million in borrowing availability under our credit facility as of September 30, 2026. We had a funded debt-to-EBITDA leverage ratio of 0.63x at the end of the third quarter. In September, we completed an amendment and extension of our credit facility, which now includes a $690 million revolving facility and a term loan facility consisting of a USD 150 million tranche and a CAD 70 million tranche, representing a $400 million aggregate capacity increase.

We believe that our credit facility, strong balance sheet and future cash flow from operations will enable us to support the organic growth of our business, pursue acquisitions and opportunistically repurchase shares. Our Board of Directors authorized a new $100 million share repurchase program that is effective on November 4. The new program will expire on November 3, 2027, or when the authorized funds are exhausted, whichever is earlier.

I'll now turn the call over to Brian Stern, who will provide an overview of our Transmission and Distribution segment.

Brian Stern

Thanks, Kelly, and good morning, everyone. The T&D segment maintained steady performance in the third quarter as our teams continued to execute work across our markets. Bidding activity remained consistent, supported by ongoing utility infrastructure. Our focus remains on selecting projects that align with our capabilities, maintaining strong customer relationships and delivering results across the markets we serve. This quarter, L.E. Myers was awarded multiple transmission projects in Indiana, Virginia and Iowa. We also secured an EPC contract for substation work in New Mexico and Washington.

Great Southwestern was selected for additional line and substation work, including a transmission line rebuild in Texas and greenfield substation work in Indiana. Harlan Electric was selected for a 345 kV line rebuild in Massachusetts, and E.S. Boulos was awarded a collector and switchyard substation project in New York.

Looking ahead, the broader market backdrop remains supportive. According to Power Insights' latest report, transmission is expected to continue growing about 10% a year through 2030. Power Insights points to load growth, aging infrastructure and ongoing resilience programs as the drivers, which supports a durable demand backdrop for T&D work. We're proud of the work accomplished this quarter and the continued focus of our employees bring safety, quality, reliable project delivery. Their efforts across the business are important part of our ability to serve our customers and perform well across our markets.

I will now turn the call over to Don Egan, who will provide an overview of our Commercial and Industrial segment.

Don Egan

Thanks, Brian, and good morning, everyone. Our C&I segment delivered solid results in the third quarter, supported by steady activity across our core markets and continued focus on project execution. Bidding activity remained healthy and backlog continued to grow as we pursue new opportunities and strengthen existing customer relationships. We remain focused on meeting customer needs, delivering quality work safely and efficiently and maintaining a balanced mix of projects across our business. Market conditions continue to support demand across commercial and industrial construction.

The Dodge Momentum Index, which tracks nonresidential building projects entering the planning stage, increased 3.7% in September compared with a year ago. Growth was led by institutional projects, particularly healthcare, education and government. These trends point to continued opportunities for our subsidiaries across the markets we serve. During the quarter, our operating companies secured a diverse mix of new work across several key markets. Huen added warehousing work in New Jersey, while Sturgeon continued its momentum in Colorado with data center and airport transportation awards.

In California, Comet secured the light rail extension project and CSI added municipality work while also securing additional data center opportunities. Valley also added wastewater work in Seattle. These results reflect the hard work and commitment of our employees across the organization. Their focus on execution, safety and customer relationships continues to support our performance and position us for future opportunities.

Thank you, everyone, for your time today. I will now hand the call back to Rick for his closing remarks.

Richard Swartz

Thank you, Kelly, Brian and Don, for your updates. Our third quarter results demonstrate the strength of our business, the discipline of our execution and the dedication of our employees across the organization. The progress we continue to make is rooted in the expertise of our people, the trust we've earned from our customers and our ability to deliver solutions across a broad range of end markets and project types. As we look ahead, we remain encouraged by the opportunities created by continued investment in electrical infrastructure and the ongoing demand for reliable power, grid modernization and electrification. We will continue to approach growth thoughtfully, focusing on operational excellence, strong customer relationships and the values that have guided our success for many years.

I want to thank our employees for their commitment to safety, quality and execution and our shareholders for their continued confidence and support. As we move through the remainder of 2026, we remain focused on serving our customers, executing our strategy and creating long-term value for our stakeholders.

Operator, we are now ready to open the call for questions.

Operator

Our first call comes from the line of Caitlin Donohue of Goldman Sachs.

分析師問答

Caitlin Donohue

So we saw C&I results come in strong this quarter. Can you walk us through how you're seeing growth within the end markets that are involved in that segment through 4Q and 2027? And then how you see margin progression on top of that?

Richard Swartz

Yes. For us, I think we're seeing good activity in all our key markets. So when you look at that side, it's not just data centers, it's the diversification that Don talked about during his prepared comments. So we see good opportunities, I would say, from a margin progression standpoint. We plan on operating in the higher range of kind of our profile there on the 6% to 9%. So consistent with where we've been in this last quarter. Going into next year, I think we see the same thing, kind of, that midrange of growth or midrange of operating margin to the upper end there on the C&I side. And then we look at probably that 18% to 20% or 22% growth on the C&I side for next year and probably that 10% to 13% on the T&D when you're looking at revenue growth. So overall, probably in that 15% to 18% range of the company.

Caitlin Donohue

That's very helpful. And then just some commentary on what you're hearing on the T&D side. I know that we've seen a lot of the regulatory headlines around larger projects recently. Just curious what you're hearing from the customer perspective, particularly for some of these anticipated higher voltage projects.

Richard Swartz

When we look at that, I would say, when you're looking at the larger projects out there, really seeing good opportunities. The projects seem to be moving forward. As we said before, that primary build-out will probably start in the '28 time frame. So we'll have some larger projects that probably start towards that mid- to end part of '27. I would say you'll see a lot more growth in '28 and beyond as it relates to large projects.

Operator

Our next call comes from the line of Sangita Jain of KeyBanc Capital Markets.

Sangita Jain

So if I can ask another one on C&I margins. We were expecting to see some impact from the Valley acquisitions from the amortization, but clearly, margins were super strong. So was there anything onetime around positive closeouts there? Or is that just strength in performance, as Rick, you mentioned, do you expect margins to trending towards the high end of the range?

Kelly Huntington

Yes, I can start on that one, Sangita, and then Rick might have some more to add. So you're correct. We did see some impact from amortization expense. As we finished the purchase price allocation work, we did see that being less of a headwind on margins than we had originally anticipated. We do see the backlog burning on Valley and Comet and the way that works for amortization expense being a little over 2 years. So that is a little bit longer than some of our prior acquisitions. So not quite as much of a headwind as we anticipated.

Richard Swartz

Yes. And I would say on the margin profile, it's good performance across the business units. We've had some strong closeouts. But again, we anticipate that being at that upper end of the margin profile of that 6% to 9% going into next year and throughout next year.

Sangita Jain

And then can you help us with the revenue contribution from Valley and Comet in 3Q and the expectations for 4Q?

Richard Swartz

I think we projected that coming into the second half of this year when we closed them and they're right on -- pretty much right on plan for what we anticipated there. So really no change, and then we see continued growth in the next year. But again, we don't cover it company by company or district by district. So overall, I would say the contribution was positive. Kelly talked about the amortization and how that affected us. But again, good performance and I think good growth opportunities there.

Sangita Jain

Rick, can I ask on the T&D margin outlook that you just gave to the prior question? And what is driving your optimism in margins heading into next year when T&D margins tend not to swing a whole lot?

Richard Swartz

Yes. And if I didn't say that, I meant to say they would be in the middle range as far as operating margins on the T&D side. So, kind of, 8% to 11% be right in the middle of where we're at now. I think the large projects don't start until the second half of next year. So you really won't see an impact from those. And as I said, they really start a little bit more from what we're anticipating projects coming out in '28 and beyond.

Kelly Huntington

Yes. And just to clarify. So the 10% to 13% that Rick mentioned, that was year-over-year revenue growth that we anticipate for T&D. So I think he just clarified the margin contribution, but just wanted to link back to that.

Sangita Jain

Yes. I figured out when he was answering.

Operator

Our next call comes from the line of Justin Hauke of Baird.

Justin Hauke

Great. I've got 2 here. First one is a quick one. You wouldn't -- you didn't give the quantification of the revenue, but you said it was in line. I'm just curious on the backlog contribution from the acquisitions. Is it similar to the, kind of, the $400 million of, kind of, annualized revenue that you were expecting as a contribution from that? Or is the backlog a smaller number for that quarter?

Richard Swartz

Again, we don't talk about backlog by division or group, but I would say it's what we anticipated coming in, and it's consistent with where the revenue has kind of have been.

Justin Hauke

Okay. And then I guess my next question is more on the balance sheet and cash flow. And just was curious, I mean, it looks like there's more fixed price contract work mix that's coming in. We noticed that the unbilled receivables, the balance is kind of growing as a percentage of revenue. You have kind of a step-up in unapproved change orders. I'm just curious if that's just a function of mix shifts or if there's anything else unusual that you would call out specific on that for the quarter?

Kelly Huntington

Yes, nothing unusual there. The last several quarters, we've had such a low balance of the pending change orders. And I'd say that's just kind of ordinary course fluctuations from quarter-to-quarter. Often, we'll get a change order that we have a verbal on. But until we get that final approval, it can show up in that bucket. So I'd say that's the ordinary course. As far as looking at cash flows and working capital, so there, we do see some continued headwinds, especially with interest rates being higher for longer. We are seeing payment terms being part of our conversations with customers and contract negotiations more than we were a few years ago. So I think that does represent some headwind against the otherwise strong EBITDA growth that we would be expecting with the revenue growth and sustaining the strong margins we've seen this year.

Operator

Our next question comes from the line of Manish Somaiya of Cantor Fitzgerald.

Manish Somaiya

Congrats team on a strong quarter. Rick, my first question is on Valley and Comet. Obviously, 3Q demonstrates that those transactions have worked out favorably. But I just wanted to, kind of, get some more, I guess, clarity from you as to how well those transactions have performed as far as your revenue, profitability, backlog and specifically as it relates to creating cross-selling opportunities?

Richard Swartz

Yes. From that standpoint, I would say the acquisitions of Valley and Comet are really -- they're meeting our expectations. We have pretty high expectations, and I would say they're meeting them today. So I think they have good opportunities in their marketplace. We continue to cross-sell where we can. As I said before on individual conversations, I think any time we do an acquisition, we try to capitalize on customers they have that we may not have across the country and vice versa. So great opportunities on that side and continued growth in those markets they're in. So pretty pleased with the acquisition to date.

Manish Somaiya

And perhaps if you can just talk about the acquisition pipeline that you see ahead. Clearly, based on your comments, markets remain strong. And just wanted to kind of get a sense from you as to what pockets of potential opportunities might make sense as far as geographically or by business?

And then just secondly, with the strong growth that you have talked about, is backlog and RPO a good measure of indication of forward visibility because it seems that there could be a lot of opportunities that may not be captured in the backlog. So I guess a two-pronged question there.

Richard Swartz

Yes. I think on your second part of the question, our backlog is always going to be lumpy. I would say, listen more to what we're saying about the activity in the market. We're seeing good activity on large projects out there. So great opportunities there, a lot of conversations going with clients. And I would anticipate some larger projects coming into our backlog either by the end of this year or, kind of, the end of the first quarter of next year. So good opportunities there and good conversations. So pretty excited about that market and where it stands today.

I think from the Valley side, I think good opportunities there. And then when you look at the acquisitions out there in that pipeline, it's active. I think we're patient. We're always going to find that right acquisition. It might take us a while to find one. But when we do, it's one we definitely want to capitalize on if we can close the deal. So again, good activity out there, both in the T&D and C&I side. I don't have a preference either way. It's really finding the quality acquisition out there and making sure that it is quality and long term and they have more than one customer.

Again, we're not focused on storm chasing contractors, but any of the ones that are on the T&D side or C&I that have a solid business and a great reputation. And that's what we're looking for. So again, patient on that side, but good activity in the marketplace as far as acquisitions.

Manish Somaiya

Have valuations adjusted, Rick, to what's transpired in the public markets in private markets? Have those also compressed, I guess, from what we've seen in the past?

Richard Swartz

Yes. I think they probably compressed a little bit from where they were. But again, we're looking at the quality of the acquisition. And I think from that side, they are -- I would say multiples are down a little bit, but still, I think with the activity out there, we see that multiple potentially coming up a little bit again from where it is today. But again, you can capitalize on the right acquisition with the right growth profile, we'll pay a fair price for a good acquisition.

Manish Somaiya

So is 8 to 10x a reasonable sort of estimate for where the private markets are in terms of M&A before synergies?

Or is that...

Richard Swartz

I would say probably on the C&I side, that's within that range. On the T&D side, it could tick up a little bit from that, depending on what the acquisition is. But I'd say it's within those ranges on the C&I side and again, a little higher on the T&D side.

Operator

Our next question comes from the line of Brent Thielman of Oppenheimer & Company.

Brent Thielman

Great quarter. Rick, maybe just on the -- one more on the C&I margins. As you look at it this year, they're up, call it, 300 basis points. I guess, that's the amortization year as well in the third quarter. And I understand the assumed margin range going forward. I know you got to go out there and you got to execute. But would it be fair to say the new business you're entering into, I guess, the contract agreements as they're structured, did they afford you more leeway to the upside to that range, again, assuming you go out and execute as you have?

Richard Swartz

I think part of our performance, we said it's related to better contract terms and conditions. We really pushed that side for more favorable ones. And I think our project outcomes reflect a little bit of that. But then again, good performance and good execution is also necessary. So I would say we're seeing that today, and we anticipate that continuing. So as I said, we'll be within that high range of the 6% to 9% next year is where we're anticipating it right now.

Brent Thielman

Understood. I appreciate that. And then on that side of the business, as you look at the larger project funnel sort of beyond backlog, how far out is your visibility your customers are sharing with you just in terms of projects? Just curious, kind of, what you see beyond the book of business you have today in that segment.

Richard Swartz

On the C&I segment, again, they're sharing projects that are further and further out. They want to make sure that they have the labor secured to do those projects and the material is also available. So we're seeing a lot of Part A, Part B contracts where maybe we're securing the material, working with them on pricing and development. And some of those projects go out into '29, '30. So I think we're seeing good opportunities there for long-term.

Brent Thielman

Okay. Just last one on the share repurchase authorization. I don't think you've been especially active this year on that front. I guess I'm just wondering if this is a statement of your view on your own share price being more compelling today versus other opportunities or just simply keeping all the options on the table?

Kelly Huntington

Yes. So I would say we've always thought about share repurchases being part of our capital allocation strategy, and we've had a good history of using that opportunistically. The program we're putting in place is $100 million, and I think reflects that we're in a really strong financial position even after closing on and funding the Valley acquisition. So we feel like we've got room to make repurchases where it makes sense as well as continue to pursue tuck-in acquisitions and support the organic growth that we see ahead. And that's a place where -- we've talked about this year, our expectation is for CapEx to represent 3% of our revenues.

We've trended a little bit below that year-to-date just really because of timing but do expect that to be picking up here in the fourth quarter. And as we look forward into 2027, see that probably being in the low to mid-3% of revenues, and that's just really reflecting the opportunities that we see ahead on the T&D side, in particular, which, of course, is the more capital-intensive side of the business, but also continue to make investments in prefab on the C&I side as well.

Operator

Our next question comes from the line of Julien Dumoulin-Smith of Jefferies.

Brian Russo

It's Brian Russo on for Julien. Just first on the T&D side. We've seen several of your key MSA customers on the utility side significantly increased their CapEx yesterday and today. And I'm just wondering what your conversations are with them? Does your -- in theory, does your MSA work increase with the increased capital expenditures? And is that the primary driver of the 10% to 13% revenue growth in 2026? Or is it the 345 kV projects with Xcel that start in the second half? Just trying to get a sense of your organic MSA, kind of, growth and then layering on top some of these larger projects that appear to be forthcoming.

Richard Swartz

Yes. I think for us, we're seeing good activity on the MSA side, but also on the small and medium-sized projects. We've talked about the large projects really not starting until the second half of '27 and beyond. So really, it's just CapEx growth that our customers are having. So a lot -- majority of our customers, we have MSA agreements with. We also do small and medium-sized projects with that are outside of that. And I would say all our clients are having -- or we're having good conversations with our clients, and they have additional CapEx, I guess, CapEx that they're spending. So for us, it's a good place to be. And I think we've got good relationships with our clients and the long-term growth perspective is strong.

Kelly Huntington

I would just add in and make one comment just as you think about kind of timing, too. We talked about that 10% to 13% year-over-year increase for T&D next year. We do see that being more weighted to kind of starting to pick up in second quarter and more weighted to the back half of the year. So especially as we see a tougher comp for T&D, we had a big uptick in our revenue -- T&D revenues last year in the fourth quarter. So we do see that revenue growth being more modest in the next 2 quarters, but then really starting to pick up in second quarter and into the second half of the year.

Brian Russo

Okay. Great. And then just to confirm your earlier comments, the Valley second half 2026 revenue is $250 million, and then it will grow kind of consistent with what you guys are forecasting for organic growth at C&I. Is that accurate?

Kelly Huntington

Just to clarify...

Richard Swartz

Go ahead, Kelly.

Kelly Huntington

Sorry about that, Rick. So just to clarify, the 18% to 22% growth next year for C&I that Rick talked about is inclusive of having full year contributions from Valley and Comet and their continued growth. So we put that all together in that number.

Richard Swartz

Yes. So I look at it -- we don't look at it from a district by district or company by company as we talk about it with investors, we look at that overall. So again, we haven't said anything about the growth for Valley next year, but we see good opportunities for them. But I wouldn't tie them into that 18% to 22% or any individual unit into that.

Brian Russo

Okay. Understood. And then just lastly, to follow up on the opportunistic M&A question. Are you still strictly focused on electrical only at C&I? Or may you look to kind of add adjacent services given the robust market we're seeing out there?

Richard Swartz

I'd say all our conversations with customers are around the electrical side. That's what we know. That's what we're good at. We see plenty of expansion there as we go forward. So good opportunities out there, and I think there's some potentially good acquisitions out there. So again, we'll continue to focus on the electrical side, not looking at adjacent side on the C&I. On the T&D side, I think we could take on some of the ancillary services that we don't do today or that we do it limited in certain areas. So again, and expand from that side. So on the T&D, it's either T&D company specifically or, kind of, that ancillary services. So a little more potential for expanded growth there than there is on the C&I side.

Operator

Our next call comes from the line of Brian Brophy of Stifel.

Brian Brophy

Just another one on C&I. I guess, were there any end markets or geographic regions where you saw a disproportionate amount of strength in the quarter?

Richard Swartz

I would say in the quarter, it was pretty well evenly distributed. We have -- we always have some pockets in any given quarter that can grow a little more or have a little better performance just due to the timing of the work. So again, it fluctuates from quarter-to-quarter, but fairly even across -- as far as the way we budgeted and looked at it, pretty close to where we were, what we anticipated.

Brian Brophy

Okay. That's helpful. And then you touched on prefab investments driving some of the CapEx. I guess I'm curious if you could talk about where you stand on kind of that adoption curve from a prefab standpoint and how much opportunity is left there to continue to increase the amount of mix on the prefab side?

Richard Swartz

For us, we continue to push that side. It's something that we started many years ago. So it's not new to us. I think as technology continues to change and we find more ways to take labor out of the field and have our people do more installing than assembling in the field, we'll continue to focus on that. So it's something, again, we focus for years. We've got teams that focus on taking that work out of the field and putting it into a controlled environment to assemble all those pieces. So we'll continue to expand that. And again, part of our CapEx for the past 5, 10 years has been building out our prefab and we'll continue to do that going forward.

Operator

At this time, I'm showing no further questions in the queue. I would now like to turn the call back over to Rick Swartz for any additional closing remarks.

Richard Swartz

To conclude, on behalf of Kelly, Brian, Don and myself, I sincerely thank you for joining us on the call today. I don't have anything further, and we look forward to working with you in the future and speaking with you again on our next conference call. Until then, stay safe.

Operator

Thank you. This concludes today's conference call. We thank you for your participation, and you may now disconnect.