Summary
EMCOR Group, Inc. reported revenues of $6.35 billion for the fiscal year ending December 31, 2012, a notable increase from $5.61 billion in 2011. This growth was driven by strong performance across its U.S. operations, particularly in mechanical and facilities services, bolstered by strategic acquisitions made in prior years. The company's diversified business model, encompassing both electrical and mechanical construction and extensive facilities services, provides resilience. While the company experienced increased operating income and improved operating margins, it noted continued market competition and a disciplined approach to bidding on projects, prioritizing profitability. Looking ahead, EMCOR's backlog remained stable at $3.37 billion, indicating a solid pipeline of future work. The company's financial position appears stable, supported by positive net cash from operations and a revolving credit facility. Investors should note EMCOR's commitment to returning capital to shareholders, evidenced by its increased quarterly dividend. Key areas for investor focus include managing the inherent cyclicality of the construction market, navigating competitive pressures, and integrating recent acquisitions to drive future growth and profitability.
Financial Highlights
51 data points| Revenue | $6.20B |
| Cost of Revenue | $5.39B |
| Gross Profit | $803.98M |
| SG&A Expenses | $543.53M |
| Operating Income | $260.30M |
| Interest Expense | $7.28M |
| Net Income | $146.58M |
| EPS (Basic) | $2.20 |
| EPS (Diluted) | $2.16 |
| Shares Outstanding (Basic) | 66.70M |
| Shares Outstanding (Diluted) | 67.74M |
Key Highlights
- 1EMCOR reported a significant year-over-year revenue increase to $6.35 billion in 2012 from $5.61 billion in 2011, driven by growth across its U.S. segments and acquisitions.
- 2Operating income increased to $250.0 million in 2012 from $210.8 million in 2011, with operating margins improving slightly to 3.9% from 3.8%.
- 3The company's backlog remained strong at $3.37 billion as of December 31, 2012, largely consistent with the prior year, indicating continued business activity.
- 4EMCOR has been actively managing its capital structure, including expanding its revolving credit facility to $750 million and initiating dividend payments, which were increased to $0.06 per share.
- 5The company's operations are geographically diversified, with approximately 92% of revenues generated in the United States and 8% in the United Kingdom.
- 6Revenues are derived from a mix of new construction (39%), renovation/retrofit (17%), and facilities services (44%), providing a balanced revenue stream.
- 7Despite improved results, EMCOR acknowledges a highly competitive marketplace and a commitment to disciplined bidding to ensure profitable project execution.