Summary
EMCOR Group, Inc. reported strong performance in its 2019 fiscal year, driven by significant revenue growth across all segments and maintained operating margins. The company achieved record revenues of approximately $9.2 billion, a 12.8% increase year-over-year, with operating income reaching $460.9 million, a 5.0% margin, consistent with the prior year's record. This growth was bolstered by strategic acquisitions and robust demand in key market sectors like commercial, manufacturing, and healthcare, contributing to an increase in remaining performance obligations to $4.04 billion. Looking ahead, EMCOR demonstrated a solid backlog, indicating continued demand for its services. The company continues to invest in its operations and pursue strategic acquisitions to expand its capabilities and geographic reach. Investors should note the company's ongoing commitment to returning value through dividends and share repurchases, although the repurchase program saw no activity in 2019. The filing also highlighted potential risks including economic downturns, competition, and operational challenges, alongside an important disclosure regarding a cybersecurity incident that occurred shortly after the fiscal year-end.
Financial Highlights
51 data points| Revenue | $9.17B |
| Cost of Revenue | $7.82B |
| Gross Profit | $1.36B |
| SG&A Expenses | $893.45M |
| Operating Income | $460.89M |
| Interest Expense | $13.82M |
| Net Income | $325.14M |
| EPS (Basic) | $5.78 |
| EPS (Diluted) | $5.75 |
| Shares Outstanding (Basic) | 56.21M |
| Shares Outstanding (Diluted) | 56.52M |
Key Highlights
- 1EMCOR Group reported record revenues of $9.175 billion in 2019, a 12.8% increase from $8.131 billion in 2018.
- 2Operating income grew to $460.9 million, maintaining a 5.0% operating margin, consistent with the prior year's record.
- 3All reportable segments experienced revenue growth, with the United States Industrial Services segment showing a significant 17.8% increase.
- 4The company completed multiple acquisitions in 2019, strengthening its presence in key regions and service areas, and contributing $290.3 million in incremental revenues.
- 5Remaining performance obligations increased to $4.04 billion as of December 31, 2019, up from $3.96 billion in the prior year, indicating a strong future revenue pipeline.
- 6EMCOR continued its dividend payments, maintaining a quarterly dividend of $0.08 per share.
- 7A cybersecurity incident involving network infiltration and encryption was disclosed, occurring in February 2020, with ongoing assessment and mitigation efforts.