EMCOR Group, Inc. Reports Fourth Quarter and Full-Year 2024 Results
Record Quarterly and Full-Year Revenues of
Record Quarterly and Full-Year Diluted EPS of
Record Remaining Performance Obligations of
2025 Revenues and Diluted EPS Guidance of
Increases Share Repurchase Program
Fourth Quarter 2024 Results of Operations
For the fourth quarter of 2024, revenues totaled
Operating income for the fourth quarter of 2024 was
Selling, general and administrative expenses (“SG&A”) for the fourth quarter of 2024 totaled
The Company's income tax rate for the fourth quarter of 2024 was
Remaining performance obligations as of December 31, 2024 were a record
Full-Year 2024 Results of Operations
Revenues for the 2024 full-year period totaled
Operating income for the 2024 full-year period was
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
The Company's income tax rate for the 2024 full-year period was
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
Mr. Guzzi added, “Our
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
and$16.1 billion $16.9 billion -
Operating Margins to be between
8.5% and9.2% -
Diluted Earnings Per Share to be in the range of
to$22.25 $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
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
Increases Share Repurchase Program
The Company also announced that its Board of Directors has authorized an additional
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
EMCOR GROUP, INC.
|
||||||||||||||
|
|
(Unaudited) |
|
|
|
|
||||||||
|
|
For the quarters ended
|
|
For the years ended
|
||||||||||
|
|
|
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.
|
||||||
|
|
December 31,
|
|
December 31,
|
||
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.
|
||||||||
|
|
|
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 |
|
(2) |
Includes |
|
EMCOR GROUP, INC.
|
||||||||||
|
|
(Unaudited) |
||||||||
|
|
For the quarters ended
|
||||||||
|
|
2024 |
|
% of
|
|
2023 |
|
% of
|
||
Revenues from unrelated entities: |
|
|
|
|
|
|
|
|
||
|
|
$ |
933,192 |
|
|
|
$ |
763,404 |
|
|
|
|
|
1,660,600 |
|
|
|
|
1,472,532 |
|
|
|
|
|
755,626 |
|
|
|
|
802,029 |
|
|
|
|
|
312,680 |
|
|
|
|
292,476 |
|
|
Total |
|
|
3,662,098 |
|
|
|
|
3,330,441 |
|
|
|
|
|
107,921 |
|
|
|
|
108,780 |
|
|
Consolidated revenues |
|
$ |
3,770,019 |
|
|
|
$ |
3,439,221 |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
For the years ended
|
||||||||
|
|
2024 |
|
% of
|
|
2023 |
|
% of
|
||
Revenues from unrelated entities: |
|
|
|
|
|
|
|
|
||
|
|
$ |
3,342,927 |
|
|
|
$ |
2,783,723 |
|
|
|
|
|
6,405,657 |
|
|
|
|
5,074,803 |
|
|
|
|
|
3,114,817 |
|
|
|
|
3,120,134 |
|
|
|
|
|
1,277,190 |
|
|
|
|
1,167,790 |
|
|
Total |
|
|
14,140,591 |
|
|
|
|
12,146,450 |
|
|
|
|
|
425,525 |
|
|
|
|
436,423 |
|
|
Consolidated revenues |
|
$ |
14,566,116 |
|
|
|
$ |
12,582,873 |
|
|
EMCOR GROUP, INC.
|
||||||||||||
|
|
(Unaudited) |
||||||||||
|
|
For the quarters ended
|
||||||||||
|
|
|
2024 |
|
|
% of
|
|
|
2023 |
|
|
% of
|
Operating income (loss): |
|
|
|
|
|
|
|
|
||||
|
|
$ |
147,902 |
|
|
|
|
$ |
76,275 |
|
|
|
|
|
|
220,622 |
|
|
|
|
|
186,094 |
|
|
|
|
|
|
40,860 |
|
|
|
|
|
42,052 |
|
|
|
|
|
|
10,209 |
|
|
|
|
|
12,642 |
|
|
|
Total |
|
|
419,593 |
|
|
|
|
|
317,063 |
|
|
|
|
|
|
4,834 |
|
|
|
|
|
5,461 |
|
|
|
Corporate administration |
|
|
(35,863 |
) |
|
|
|
|
(33,328 |
) |
|
|
Consolidated operating income |
|
|
388,564 |
|
|
|
|
|
289,196 |
|
|
|
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
|
||||||||||
|
|
|
2024 |
|
|
% of
|
|
|
2023 |
|
|
% of
|
Operating income (loss): |
|
|
|
|
|
|
|
|
||||
|
|
$ |
447,186 |
|
|
|
|
$ |
230,640 |
|
|
|
|
|
|
799,613 |
|
|
|
|
|
530,644 |
|
|
|
|
|
|
176,720 |
|
|
|
|
|
182,995 |
|
|
|
|
|
|
44,213 |
|
|
|
|
|
35,375 |
|
|
|
Total |
|
|
1,467,732 |
|
|
|
|
|
979,654 |
|
|
|
|
|
|
21,485 |
|
|
|
|
|
25,681 |
|
|
|
Corporate administration |
|
|
(144,354 |
) |
|
|
|
|
(127,229 |
) |
|
|
Impairment loss on long-lived assets |
|
|
— |
|
|
|
|
|
(2,350 |
) |
|
|
Consolidated operating income |
|
|
1,344,863 |
|
|
|
|
|
875,756 |
|
|
|
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
|
|
For the year ended
|
||||||||
|
|
$ |
|
% |
|
$ |
|
% |
||||
GAAP revenue growth |
|
$ |
330,798 |
|
|
|
|
$ |
1,983,243 |
|
|
|
Incremental revenues from acquisitions |
|
|
(77,802 |
) |
|
(2.2)% |
|
|
(251,540 |
) |
|
(2.0)% |
Organic revenue growth, a non-GAAP measure |
|
$ |
252,996 |
|
|
|
|
$ |
1,731,703 |
|
|
|
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
|
||||
|
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
|
||
|
2024 |
|
2023 |
GAAP operating margin |
|
|
|
Impairment loss on long-lived assets |
—% |
|
|
Non-GAAP operating margin |
|
|
|
|
For the years ended
|
|||||
|
|
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
|
|||||
|
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
Source: EMCOR Group, Inc.