Demand Helps Emcor to Record 3Q Revenues, EPS

Contributed by BSM Staff

NORWALK, CT -- Continued demand for energy efficiency and retrofit projects, have helped EMCOR Group, Inc. to report record revenue for the third quarter ended September 30, 2023.

The company reported net income of $169 million, or $3.57 a share, on sales of $3.2 billion, compared to $105.8 million, or $2.16 a share, on sales of $2.8 billion in last year’s same period.

Tony Guzzi, chairman, president and CEO, said the U.S. Building Services segment continues to perform well, with a strong mix of work across all service lines, achieving top line growth of 13.7%, and an operating margin of 7.0%.

“Contributing to this strength is continued demand for energy efficiency and retrofit projects, building automation and controls, IAQ upgrades, as well as maintenance and repair service projects,” said Guzzi.
While the third quarter is typically the weakest for Emcor’s U.S. Industrial Services segment, it continues to see modest improvement in this segment’s results year-over-year.

Emcor’s U.K. Building Services segment is executing well with an operating margin of 8.0% despite challenging market conditions, added Guzzi.

“The Company had another excellent quarter, resulting in multiple records across our business as we continue to build on strong momentum,” he said. “Year-over-year revenues increased 13.5%, or 12.8% on an organic basis, driven by double-digit revenue growth in our combined U.S. Construction segments, as well as our U.S. Building Services segment. Despite ongoing geopolitical tensions and tightened financing conditions creating a challenging macroeconomic environment, strong end-market demand, coupled with excellent execution, have helped drive our success this quarter.”

Emcor also continues to see strong demand for its nationwide fire & life safety projects and services.
“Our industry leading capabilities in building information modeling, prefabrication, project planning and labor sourcing have helped us adapt and navigate the ongoing supply chain and macroeconomic challenges.”

Based on year-to-date performance, EMCOR is raising its full year 2023 guidance for revenues and diluted earnings per share. The Company now expects full year 2023 revenues to be approximately $12.5 billion, the top end of its prior guidance range of $12.0 billion to $12.5 billion, and currently expects full-year 2023 non-GAAP diluted earnings per share in the range of $12.25 to $12.65, an increase from its prior guidance range of $10.75 to $11.25.

Guzzi concluded, “Our strong balance sheet is a competitive advantage, and we will continue to be prudent capital allocators, pursuing both organic investments and strategic acquisitions, while also returning capital to shareholders and remaining cognizant of the uncertain macroeconomic and political landscape. Our team’s proven ability to successfully navigate challenging environments only bolsters our confidence in our future.”

The company has assets of $6.2 billion, and liabilities of $3.94 billion.

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