Myr Group (MYRG) risk factors, FY2025 10-K

Industry & Market Risks

1. 01Our operating results may vary significantly from period to period
2. 02Our industry is highly competitive
3. 03Negative economic and market conditions including tariffs and inflation on materials, interest rates and recessionary conditions have in the past and may in the future adversely impact our customers’ spending and, as a result, our operations and growth
4. 04We may be unsuccessful in generating internal growth, which could impact the projects available to the Company
5. 05Our inability to successfully execute or integrate acquisitions or joint ventures may have an adverse impact on our growth strategy and business

Business and Operating Risks

1. 06Project performance issues, including those caused by third parties, or certain contractual obligations have in the past and may in the future result in additional costs to us, reductions or delays in revenues or the payment of penalties, including liquidated damages
2. 07We may be unable to attract and retain qualified personnel
3. 08The timing of new contracts and termination of existing contracts may result in unpredictable fluctuations in our cash flows and financial results
4. 09During the ordinary course of our business, we have in the past and may in the future become subject to lawsuits or indemnity claims
5. 10Backlog may not be realized or may not result in profits and may not accurately represent future revenue
6. 11Risks associated with operating in the Canadian market could impact our profitability
7. 12Changes in tax laws or our interpretations of tax laws could materially impact our tax liabilities
8. 13The nature of our business exposes us to potential liability for warranty claims and faulty engineering, which may reduce our profitability
9. 14Pandemic outbreaks of disease, such as the COVID-19 pandemic, have in the past had and may in the future have an adverse impact on our business, employees, liquidity, financial condition, results of operations and cash flows
10. 15Our dependence on customers, suppliers, subcontractors and equipment manufacturers has in the past and may in the future expose us to the risk of loss in our operations
11. 16Our participation in joint ventures and other projects with third parties may expose us to liability for failures of our partners

Regulatory and Environmental Risks

1. 17Legislative or regulatory actions relating to utility, electricity transmission, clean energy or our business activities may impact demand for our services
2. 18We have in the past and may in the future incur liabilities and suffer negative financial or reputational impacts relating to occupational health and safety matters, including those related to environmental hazards such as wildfires and other natural disasters
3. 19Our failure to comply with environmental and other laws and regulations could result in significant liabilities
4. 20Our business may be affected by seasonal and other variations, including severe weather conditions and the nature of our work environment
5. 21Opportunities associated with government contracts could lead to increased governmental regulation applicable to us
6. 22We are subject to risks associated with climate change including financial risks and physical risks such as an increase in extreme weather events (such as floods, wildfires or hurricanes), rising sea levels and limitations on water availability and quality
7. 23Our use of percentage-of-completion accounting could result in a reduction or reversal of previously recognized revenues and profits
8. 24Our financial results are based upon estimates and assumptions that may differ from actual results22% rewritten
9. 25Our actual costs may be greater than expected in performing our fixed-price and unit-price contracts
10. 26An increase in the cost or availability for items such as materials, parts, commodities, equipment and tooling may also be impacted by trade regulations, tariffs, global relations, wars, taxes, transportation costs and inflation which could adversely affect our business
11. 27We may not be able to compete for, or work on, certain projects if we are not able to obtain necessary bonds, letters of credit, bank guarantees or other financial assurances
12. 28Unfavorable developments affecting the banking and financial services industry could adversely affect our business, liquidity and financial condition and overall results of operations
13. 29Work stoppages or other labor issues with our unionized workforce could adversely affect our business, and we may be subject to unionization attempts
14. 30Multi-employer pension plan obligations related to our unionized workforce could adversely impact our earnings

Cybersecurity and Information Technology Risks

1. 31We rely on information, communications and data systems in our operations and we or our business partners may be subject to failures, interruptions or breaches of such systems, which could affect our operations or our competitive position, expose sensitive information or damage our reputation