Summary
EMCOR Group, Inc. reported strong financial performance for the fiscal year 2017, with record revenues of $7.7 billion, marking a 1.8% increase from the previous year. This growth was driven by acquisitions and increased activity in its domestic construction segments, particularly electrical and mechanical services, which benefited from strong performance in commercial, institutional, and healthcare projects. The company also saw an increase in its United Kingdom building services segment. Despite overall revenue growth, the United States industrial services segment experienced a significant decline, primarily due to reduced large project activity, the impact of Hurricane Harvey on turnaround projects, and adverse market conditions. This segment's weakness led to a substantial goodwill impairment charge of $57.8 million. However, improved operating performance across most segments, coupled with the recovery of disputed contract costs, resulted in a higher operating income and a slight increase in operating margin to 4.3%. EMCOR continues to demonstrate solid cash flow generation and maintains a healthy backlog, although it slightly decreased year-over-year.
Financial Highlights
52 data points| Revenue | $7.69B |
| Cost of Revenue | $6.54B |
| Gross Profit | $1.15B |
| SG&A Expenses | $758.71M |
| Operating Income | $328.90M |
| Interest Expense | $12.77M |
| Net Income | $227.20M |
| EPS (Basic) | $3.84 |
| EPS (Diluted) | $3.82 |
| Shares Outstanding (Basic) | 59.25M |
| Shares Outstanding (Diluted) | 59.62M |
Key Highlights
- 1Record revenues of $7.7 billion in 2017, a 1.8% increase year-over-year, driven by acquisitions and strength in construction segments.
- 2Operating income increased to $330.6 million, with an improved operating margin of 4.3% compared to 4.1% in 2016.
- 3Significant $57.8 million goodwill impairment charge primarily related to the United States industrial services segment due to market challenges.
- 4United States electrical and mechanical construction segments showed strong revenue and operating income growth.
- 5United States industrial services segment faced headwinds, with revenues declining due to reduced project activity and market conditions.
- 6Backlog stood at $3.79 billion at year-end 2017, a slight decrease from $3.90 billion in 2016.
- 7The company maintained its quarterly dividend of $0.08 per share and had $174.8 million remaining under its share repurchase authorization.