Record Quarterly and Full-Year Revenues of
$3.77 billion and $14.57 billion, respectively
Record Quarterly and Full-Year Diluted EPS
of $6.32 and $21.52, respectively
Record Remaining Performance Obligations of
$10.10 billion, 14.2% Increase Year-over-Year
2025 Revenues and Diluted EPS Guidance of
$16.1 billion - $16.9 billion and $22.25 - $24.00
Increases Share Repurchase Program $500
Million
EMCOR Group, Inc. (NYSE: EME) today reported results for the
fourth quarter and year ended December 31, 2024.
Fourth Quarter 2024 Results of
Operations
For the fourth quarter of 2024, revenues totaled $3.77 billion,
an increase of 9.6%, compared to $3.44 billion for the fourth
quarter of 2023. Net income for the fourth quarter of 2024 was
$292.2 million, or $6.32 per diluted share, compared to net income
of $211.5 million, or $4.47 per diluted share, for the fourth
quarter of 2023.
Operating income for the fourth quarter of 2024 was $388.6
million, or 10.3% of revenues, compared to operating income of
$289.2 million, or 8.4% of revenues, for the fourth quarter of
2023. Operating income included depreciation and amortization
expense (inclusive of amortization of identifiable intangible
assets) of $35.3 million and $31.2 million for the fourth quarter
of 2024 and 2023, respectively.
Selling, general and administrative expenses (“SG&A”) for
the fourth quarter of 2024 totaled $368.5 million, or 9.8% of
revenues, compared to $328.5 million, or 9.6% of revenues, for the
fourth quarter of 2023.
The Company's income tax rate for the fourth quarter of 2024 was
26.7%, compared to 27.5% for the fourth quarter of 2023.
Remaining performance obligations as of December 31, 2024 were a
record $10.10 billion compared to $8.85 billion as of December 31,
2023, an increase of $1.25 billion year-over-year.
Full-Year 2024 Results of
Operations
Revenues for the 2024 full-year period totaled $14.57 billion,
an increase of 15.8%, compared to $12.58 billion for the 2023
full-year period. Net income for the 2024 full-year period was $1.0
billion, or $21.52 per diluted share, compared to $633.0 million,
or $13.31 per diluted share, for the 2023 full-year period. Net
income for the 2023 full-year period included a long-lived asset
impairment charge of $2.4 million, or $1.7 million after taxes.
Excluding this impairment charge, non-GAAP net income for the 2023
full-year period was $634.7 million, or $13.34 per diluted
share.
Operating income for the 2024 full-year period was $1.34
billion, or 9.2% of revenues, compared to $875.8 million, or 7.0%
of revenues, for the 2023 full-year period. Excluding the
previously referenced impairment charge, non-GAAP operating income
for the 2023 full-year period was $878.1 million, or 7.0% of
revenues. Operating income included depreciation and amortization
expense (inclusive of amortization of identifiable intangible
assets) of $133.7 million and $119.0 million for the 2024 and 2023
full-year periods, respectively.
Refer to the attached tables for a reconciliation of non-GAAP
operating income, non-GAAP operating margin, non-GAAP net income,
and non-GAAP diluted earnings per share to the comparable GAAP
measures.
SG&A totaled $1.42 billion, or 9.7% of revenues, for the
2024 full-year period, compared to $1.21 billion, or 9.6% of
revenues, for the 2023 full-year period.
The Company's income tax rate for the 2024 full-year period was
26.9%, compared to 27.5% for the 2023 full-year period.
Tony Guzzi, Chairman, President, and Chief Executive Officer of
EMCOR, commented, “The Company reported outstanding results for the
fourth quarter and full year of 2024. We achieved record revenues,
operating income, operating margin, and diluted earnings per share
for both the quarter and annual periods, reflecting strong demand
for our services and exceptional execution by our team. Looking
ahead, we anticipate continued momentum in demand, as evidenced by
the 14.2% year-over-year increase in our remaining performance
obligations."
Mr. Guzzi added, “Our U.S. Construction segments posted
another quarter of exceptional results, concluding an outstanding
year. On a combined basis, these segments achieved record revenues
and operating income for both the fourth quarter and full year. We
remain confident in the future of these businesses given several
tailwinds, including a strong project pipeline with a solid margin
profile. Our U.S. Mechanical Construction segment had a
particularly exceptional year with 26.2% annual revenue growth,
most of which was organic, driven by strong performance across
virtually every end market in which we operate. We believe that our
investments in building information modeling, prefabrication, and
digital tools have increased our productivity and led to
operational efficiencies across this segment, as evidenced in part
by an operating margin of 12.5% for the full year. Our U.S.
Electrical Construction segment continued to perform very well
as we benefited from consistent strong demand, particularly in the
data center market. This segment also benefited from growth within
the high-tech manufacturing market sector, as demand for our
electrical construction services strengthened throughout the year,
and the manufacturing and industrial market sector as we performed
various projects for our energy sector customers. This performance
is reflected in the segment’s revenue growth of 20.1% and operating
margin of 13.4% for the full year. Despite facing several headwinds
within our site-based services businesses, our U.S. Building
Services segment had a solid year, with full-year 2024 revenues
remaining essentially in line with those of 2023, as demand for
mechanical services remained resilient, driven by energy efficiency
retrofits and building automation and controls projects. Our
U.S. Industrial Services segment continued to improve at a
measured pace, delivering revenue growth of 9.4% and operating
income growth of 25.0%, year-over-year. Our U.K. Building
Services segment performed as we anticipated, reporting an
operating margin of 5.0% for the full year, despite operating in a
challenging macroeconomic environment.”
Full-Year 2025 Guidance
Based on anticipated project mix and current visibility into the
coming year, EMCOR expects the following for the 2025 full year
period:
- Revenues to be between $16.1 billion and $16.9
billion
- Operating Margins to be between 8.5% and 9.2%
- Diluted Earnings Per Share to be in the range of $22.25
to $24.00
Mr. Guzzi continued, "2024 was a remarkable year for EMCOR,
marked by outstanding execution for our customers and
record-breaking achievements across nearly every metric for the
Company. Our total and organic revenue growth of 15.8% and 13.8%,
respectively, and operating income growth of 53.6%, were fueled by
our execution in key market sectors such as network and
communications, high-tech manufacturing, institutional, healthcare,
and manufacturing and industrial. The demand for our services in
these areas remained strong as these projects require excellence in
specialty trade contracting and a track record of delivering
quality results. Despite challenges in certain parts of the
business, our team consistently demonstrated resilience and
adaptability, showcasing the strength of EMCOR. We continued to
realize the benefits of our organic growth initiatives as our
investments in virtual design and construction and prefabrication
created efficiencies that helped differentiate us from our
competitors, especially when combined with the project-level
expertise of our teams and the strength and flexibility of our
balance sheet.”
Mr. Guzzi concluded, "Looking ahead to 2025, we are confident in
our ability to win and execute complex projects in key sectors and
geographies. Our record remaining performance obligations of $10.10
billion provide solid visibility into 2025. Recent acquisitions,
including Miller Electric Company, which closed on February 3,
2025, reflect our focus on expanding and complementing our existing
capabilities to better serve our customers. We will maintain our
disciplined approach to capital allocation, focusing on organic
growth, strategic acquisitions, and returning capital to
shareholders.”
Increases Share Repurchase
Program
The Company also announced that its Board of Directors has
authorized an additional $500 million for the purchase of shares of
its outstanding common stock under its existing share repurchase
program.
Tony Guzzi, Chairman, President, and Chief Executive Officer of
EMCOR, remarked, "Our continued outstanding performance in 2024,
combined with our long-term confidence in our business, strong free
cash flow and financial position, and commitment to returning cash
to our shareholders as part of a balanced capital allocation
strategy, are all reflected in another increase of our share
repurchase program.”
Repurchases under the authorization will be funded by the
Company's operations. Shares will be repurchased from time to time
on the open market or through privately negotiated transactions at
the Company's discretion, subject to market conditions, and in
accordance with applicable regulatory requirements. The share
repurchase program has no expiration date and does not obligate the
Company to acquire any particular amount of common stock and may be
suspended, recommenced, or discontinued at any time or from time to
time without prior notice.
Fourth Quarter and Full-Year 2024
Earnings Conference Call Information
EMCOR Group's fourth quarter conference call will be broadcast
live via the internet today, Wednesday, February 26, at 10:30 AM
Eastern Standard Time and can be accessed through the Company's
website at www.emcorgroup.com.
About EMCOR
EMCOR Group, Inc. is a Fortune 500 leader in mechanical and
electrical construction services, industrial and energy
infrastructure and building services. This press release and other
press releases may be viewed at the Company’s website at
www.emcorgroup.com. EMCOR routinely
posts information that may be important to investors in the
“Investor Relations” section of our website at www.emcorgroup.com. Investors and potential
investors are encouraged to consult the EMCOR website regularly for
important information about EMCOR.
Forward Looking Statements:
This release and related presentation contain forward-looking
statements. Such statements speak only as of February 26, 2025, and
EMCOR assumes no obligation to update any such forward-looking
statements, unless required by law. These forward-looking
statements include statements regarding anticipated future
operating and financial performance; the anticipated benefits and
financial impact of the acquisition of Miller Electric Company;
financial guidance and projections underlying that guidance; the
nature and impact of our remaining performance obligations and
timing of future projects; our ability to support organic growth
and balanced capital allocation; market opportunities and growth
prospects; customer trends; and project mix. These forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those anticipated (whether
expressly or implied) by the forward-looking statements.
Accordingly, these statements do not guarantee future performance
or events. Applicable risks and uncertainties include, but are not
limited to, adverse effects of general economic conditions;
domestic and international political developments and/or conflicts;
changes in the specific markets for EMCOR’s services; the continued
strength or weakness of the sectors from which we generate
revenues; adverse business conditions; scarcity of skilled labor;
productivity challenges; the nature and extent of supply chain
disruptions impacting availability and pricing of materials;
inflationary trends, including fluctuations in energy costs; the
impact of legislation and/or government regulations; changes in
interest rates; changes in foreign trade policy including the
effect of tariffs; the availability of adequate levels of surety
bonding; increased competition; the impact of legal proceedings,
claims, lawsuits, or governmental investigations; and unfavorable
developments in the mix of our business. Certain of the risk
factors associated with EMCOR’s business are also discussed in Part
I, Item 1A “Risk Factors,” of the Company’s 2024 Form 10-K, and in
other reports filed from time to time with the Securities and
Exchange Commission and available at www.sec.gov and
www.emcorgroup.com. Such risk factors should be taken into account
in evaluating our business, including any forward-looking
statements.
Non-GAAP Measures:
This release and related presentation also include certain
financial measures that were not prepared in accordance with U.S.
generally accepted accounting principles (GAAP). Reconciliations of
those non-GAAP financial measures to the most directly comparable
GAAP financial measures are included in this release. The Company
uses these non-GAAP measures as key performance indicators for the
purpose of evaluating performance internally. We also believe that
these non-GAAP measures provide investors with useful information
with respect to our ongoing operations. Any non-GAAP financial
measures presented are not, and should not be viewed as,
substitutes for financial measures required by GAAP, have no
standardized meaning prescribed by GAAP, and may not be comparable
to the calculation of similar measures of other companies.
EMCOR GROUP, INC.
FINANCIAL HIGHLIGHTS CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except share and per share
information)
(Unaudited)
For the quarters ended
December 31,
For the years ended
December 31,
2024
2023
2024
2023
Revenues
$
3,770,019
$
3,439,221
$
14,566,116
$
12,582,873
Cost of sales
3,013,004
2,821,476
11,801,065
10,493,534
Gross profit
757,015
617,745
2,765,051
2,089,339
Selling, general and administrative
expenses
368,451
328,549
1,420,188
1,211,233
Impairment loss on long-lived assets
—
—
—
2,350
Operating income
388,564
289,196
1,344,863
875,756
Net periodic pension income (cost)
224
(279
)
894
(1,119
)
Interest income (expense), net
9,666
2,830
31,625
(1,784
)
Income before income taxes
398,454
291,747
1,377,382
872,853
Income tax provision
106,293
80,232
370,237
239,524
Net income including noncontrolling
interests
292,161
211,515
1,007,145
633,329
Net (loss) income attributable to
noncontrolling interests
—
(2
)
—
335
Net income attributable to EMCOR Group,
Inc.
$
292,161
$
211,517
$
1,007,145
$
632,994
Basic earnings per common share:
$
6.35
$
4.49
$
21.61
$
13.37
Diluted earnings per common share:
$
6.32
$
4.47
$
21.52
$
13.31
Weighted average shares of common stock
outstanding:
Basic
45,989,277
47,097,762
46,616,079
47,358,467
Diluted
46,198,291
47,331,532
46,808,293
47,564,258
Dividends declared per common share
$
0.25
$
0.18
$
0.93
$
0.69
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,339,550
$
789,750
Accounts receivable, net
3,577,537
3,203,490
Contract assets
284,791
269,885
Inventories
95,667
110,774
Prepaid expenses and other
91,644
73,072
Total current assets
5,389,189
4,446,971
Property, plant, and equipment, net
207,489
179,378
Operating lease right-of-use assets
316,128
310,498
Goodwill
1,018,415
956,549
Identifiable intangible assets, net
648,180
586,032
Other assets
137,072
130,293
Total assets
$
7,716,473
$
6,609,721
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
937,087
$
935,967
Contract liabilities
2,047,540
1,595,109
Accrued payroll and benefits
751,434
596,936
Other accrued expenses and liabilities
336,555
315,107
Operating lease liabilities, current
81,247
75,236
Total current liabilities
4,153,863
3,518,355
Operating lease liabilities, long-term
261,575
259,430
Other long-term obligations
362,341
361,121
Total liabilities
4,777,779
4,138,906
Equity:
Total EMCOR Group, Inc. stockholders’
equity
2,937,657
2,469,778
Noncontrolling interests
1,037
1,037
Total equity
2,938,694
2,470,815
Total liabilities and equity
$
7,716,473
$
6,609,721
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the
Years Ended December 31, 2024 and 2023 (In thousands)
2024
2023
Cash flows - operating activities:
Net income including noncontrolling
interests
$
1,007,145
$
633,329
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
56,678
51,822
Amortization of identifiable intangible
assets
77,002
67,143
Provision for credit losses
17,303
7,859
Deferred income taxes
(29,115
)
(16,651
)
Gain on sale or disposal of property,
plant, and equipment
(1,012
)
(2,057
)
Non-cash expense from contingent
consideration arrangements
8,892
2,287
Non-cash expense for impairment of
long-lived assets
—
2,350
Non-cash share-based compensation
expense
19,978
13,739
Other reconciling items
(1,700
)
(2,019
)
Changes in operating assets and
liabilities, excluding the effect of businesses acquired
252,723
141,853
Net cash provided by operating
activities
1,407,894
899,655
Cash flows - investing activities:
Payments for acquisitions of businesses,
net of cash acquired
(228,173
)
(96,491
)
Proceeds from sale or disposal of
property, plant, and equipment
3,839
13,604
Purchases of property, plant, and
equipment
(74,950
)
(78,404
)
Net cash used in investing
activities
(299,284
)
(161,291
)
Cash flows - financing activities:
Proceeds from revolving credit
facility
—
200,000
Repayments of revolving credit
facility
—
(200,000
)
Repayments of long-term debt and debt
issuance costs
—
(246,171
)
Repayments of finance lease
liabilities
(2,855
)
(2,776
)
Dividends paid to stockholders
(43,384
)
(32,684
)
Repurchases of common stock
(489,820
)
(127,713
)
Taxes paid related to net share
settlements of equity awards
(15,397
)
(6,060
)
Issuances of common stock under employee
stock purchase plan
943
9,189
Payments for contingent consideration
arrangements
(4,852
)
(5,839
)
Net cash used in financing
activities
(555,365
)
(412,054
)
Effect of exchange rate changes on
cash, cash equivalents, and restricted cash
(2,600
)
6,372
Increase in cash, cash equivalents, and
restricted cash
550,645
332,682
Cash, cash equivalents, and restricted
cash at beginning of year (1)
789,750
457,068
Cash, cash equivalents, and restricted
cash at end of period (2)
$
1,340,395
$
789,750
(1)
Includes $0.6 million of restricted cash
classified as “Prepaid expenses and other” in the Condensed
Consolidated Balance Sheets as of December 31, 2022.
(2)
Includes $0.8 million of restricted cash
classified as “Prepaid expenses and other” in the Condensed
Consolidated Balance Sheets as of December 31, 2024.
EMCOR GROUP, INC.
SEGMENT INFORMATION (In thousands, except for
percentages)
(Unaudited)
For the quarters ended
December 31,
2024
% of Total
2023
% of Total
Revenues from unrelated
entities:
United States electrical construction and
facilities services
$
933,192
25%
$
763,404
22%
United States mechanical construction and
facilities services
1,660,600
44%
1,472,532
43%
United States building services
755,626
20%
802,029
23%
United States industrial services
312,680
8%
292,476
9%
Total United States operations
3,662,098
97%
3,330,441
97%
United Kingdom building services
107,921
3%
108,780
3%
Consolidated revenues
$
3,770,019
100%
$
3,439,221
100%
For the years ended
December 31,
2024
% of Total
2023
% of Total
Revenues from unrelated
entities:
United States electrical construction and
facilities services
$
3,342,927
23%
$
2,783,723
22%
United States mechanical construction and
facilities services
6,405,657
44%
5,074,803
41%
United States building services
3,114,817
21%
3,120,134
25%
United States industrial services
1,277,190
9%
1,167,790
9%
Total United States operations
14,140,591
97%
12,146,450
97%
United Kingdom building services
425,525
3%
436,423
3%
Consolidated revenues
$
14,566,116
100%
$
12,582,873
100%
EMCOR GROUP, INC.
SEGMENT INFORMATION (In thousands, except for
percentages)
(Unaudited)
For the quarters ended
December 31,
2024
% of Segment Revenues
2023
% of Segment Revenues
Operating income (loss):
United States electrical construction and
facilities services
$
147,902
15.8%
$
76,275
10.0%
United States mechanical construction and
facilities services
220,622
13.3%
186,094
12.6%
United States building services
40,860
5.4%
42,052
5.2%
United States industrial services
10,209
3.3%
12,642
4.3%
Total United States operations
419,593
11.5%
317,063
9.5%
United Kingdom building services
4,834
4.5%
5,461
5.0%
Corporate administration
(35,863
)
(33,328
)
Consolidated operating income
388,564
10.3%
289,196
8.4%
Other items:
Net periodic pension income (cost)
224
(279
)
Interest income, net
9,666
2,830
Income before income taxes
$
398,454
$
291,747
For the years ended
December 31,
2024
% of Segment Revenues
2023
% of Segment Revenues
Operating income (loss):
United States electrical construction and
facilities services
$
447,186
13.4%
$
230,640
8.3%
United States mechanical construction and
facilities services
799,613
12.5%
530,644
10.5%
United States building services
176,720
5.7%
182,995
5.9%
United States industrial services
44,213
3.5%
35,375
3.0%
Total United States operations
1,467,732
10.4%
979,654
8.1%
United Kingdom building services
21,485
5.0%
25,681
5.9%
Corporate administration
(144,354
)
(127,229
)
Impairment loss on long-lived assets
—
(2,350
)
Consolidated operating income
1,344,863
9.2%
875,756
7.0%
Other items:
Net periodic pension income (cost)
894
(1,119
)
Interest income (expense), net
31,625
(1,784
)
Income before income taxes
$
1,377,382
$
872,853
EMCOR GROUP, INC. RECONCILIATION OF
ORGANIC REVENUE GROWTH (In thousands, except for percentages)
(Unaudited)
The following table provides a reconciliation between organic
revenue growth, a non-GAAP measure, and total revenue growth for
the quarter and year ended December 31, 2024.
For the quarter ended December
31, 2024
For the year ended December
31, 2024
$
%
$
%
GAAP revenue growth
$
330,798
9.6%
$
1,983,243
15.8%
Incremental revenues from acquisitions
(77,802
)
(2.2)%
(251,540
)
(2.0)%
Organic revenue growth, a non-GAAP
measure
$
252,996
7.4%
$
1,731,703
13.8%
EMCOR GROUP, INC. RECONCILIATION OF
OTHER NON-GAAP MEASURES (In thousands, except for percentages
and per share data) (Unaudited)
In our press release, we provide non-GAAP operating income,
non-GAAP operating margin, non-GAAP net income, and non-GAAP
diluted earnings per common share for the year ended December 31,
2023. The following tables provide a reconciliation between these
amounts determined on a non-GAAP basis and the most directly
comparable GAAP measures.
For the years ended
December 31,
2024
2023
GAAP operating income
$
1,344,863
$
875,756
Impairment loss on long-lived assets
—
2,350
Non-GAAP operating income
$
1,344,863
$
878,106
For the years ended
December 31,
2024
2023
GAAP operating margin
9.2%
7.0%
Impairment loss on long-lived assets
—%
0.0%
Non-GAAP operating margin
9.2%
7.0%
For the years ended
December 31,
2024
2023
GAAP net income
$
1,007,145
$
632,994
Impairment loss on long-lived assets
—
2,350
Tax effect of impairment loss on
long-lived assets
—
(651
)
Non-GAAP net income
$
1,007,145
$
634,693
For the years ended
December 31,
2024
2023
GAAP diluted earnings per common share
$
21.52
$
13.31
Impairment loss on long-lived assets
—
0.05
Tax effect of impairment loss on
long-lived assets
—
(0.01
)
Non-GAAP diluted earnings per common
share
$
21.52
$
13.34
_________ Amounts presented in this table may not foot due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250226342943/en/
EMCOR GROUP, INC. Andrew G. Backman Vice President, Investor
Relations (203) 849-7938 FTI Consulting, Inc. Investors: Blake
Mueller (718) 578-3706
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