Summary
EMCOR Group, Inc. reported a strong performance in its 2016 fiscal year, achieving record revenues of approximately $7.6 billion, a 12.4% increase from 2015. This growth was driven by broad-based increases across its domestic segments, particularly in electrical and mechanical construction, alongside a robust performance in its industrial services segment. The company also saw improvements in its building services operations. Despite increased revenues, operating income as a percentage of revenues slightly declined from 4.3% in 2015 to 4.1% in 2016. This was primarily due to significant losses incurred on three specific construction projects within the mechanical and electrical construction segments, which negatively impacted the overall operating margin. Looking ahead, EMCOR maintained a healthy backlog of $3.9 billion at the end of 2016, up from $3.77 billion in the prior year, indicating continued demand for its services. The company's strategic acquisitions in 2016, notably Ardent Services, L.L.C., contributed to revenue growth and expanded its capabilities, particularly in the electrical and instrumentation services sector. EMCOR also continued its commitment to shareholder returns through consistent quarterly dividend payments and ongoing share repurchases.
Financial Highlights
52 data points| Revenue | $7.55B |
| Cost of Revenue | $6.51B |
| Gross Profit | $1.04B |
| SG&A Expenses | $727.07M |
| Operating Income | $306.93M |
| Interest Expense | $12.63M |
| Net Income | $181.94M |
| EPS (Basic) | $3.00 |
| EPS (Diluted) | $2.97 |
| Shares Outstanding (Basic) | 60.77M |
| Shares Outstanding (Diluted) | 61.21M |
Key Highlights
- 1Record revenues of $7.55 billion in 2016, an increase of 12.4% year-over-year, driven by strong performance across most segments.
- 2Backlog increased to $3.9 billion at year-end 2016 from $3.77 billion in 2015, signaling sustained demand.
- 3Acquisition of Ardent Services in 2016 strengthened the United States electrical construction and facilities services segment, contributing $158.5 million in revenues.
- 4Despite revenue growth, operating income margin slightly decreased to 4.1% in 2016 from 4.3% in 2015, impacted by $47.3 million in losses on three specific construction projects.
- 5The company continued its capital return program, repurchasing approximately $88.6 million of common stock in 2016 and paying a consistent quarterly dividend of $0.08 per share.
- 6All segments, except for the UK building services segment, showed revenue growth, with the UK segment impacted by unfavorable exchange rates.
- 7The company's credit facility was amended and restated in August 2016, increasing the revolving credit facility to $900 million and the term loan to $400 million.