Summary
EMCOR Group, Inc. reported strong financial performance for the fiscal year ended December 31, 2021, with revenues reaching a new annual record of $9.9 billion, a 12.6% increase from the previous year. This growth was driven by a resurgence in project activity across most of its operating segments, particularly in electrical and mechanical construction, and building services, with a notable recovery from COVID-19 related disruptions experienced in 2020. The company also saw a significant improvement in operating income, rising to $530.8 million from $256.8 million in 2020, partly due to the absence of significant impairment charges recorded in the prior year, and partly due to operational efficiencies and increased revenue volumes. The company continues to expand its service offerings and geographic reach through strategic acquisitions, acquiring eight companies in 2021. EMCOR's strong remaining performance obligations of $5.6 billion indicate a robust backlog for future revenue. Despite some margin compression in certain segments due to supply chain issues and input cost escalations, the overall financial health appears solid, supported by a healthy cash position and available credit facilities. Investors will want to monitor the impact of ongoing supply chain challenges and inflationary pressures on future margins and the company's ability to pass these costs on to customers.
Financial Highlights
51 data points| Revenue | $9.90B |
| Cost of Revenue | $8.40B |
| Gross Profit | $1.50B |
| SG&A Expenses | $970.94M |
| Operating Income | $530.80M |
| Interest Expense | $6.07M |
| Net Income | $383.53M |
| EPS (Basic) | $7.09 |
| EPS (Diluted) | $7.06 |
| Shares Outstanding (Basic) | 54.07M |
| Shares Outstanding (Diluted) | 54.35M |
Key Highlights
- 1Record annual revenues of $9.9 billion in 2021, a 12.6% increase from 2020, driven by recovery and increased project activity.
- 2Operating income more than doubled to $530.8 million in 2021 from $256.8 million in 2020, aided by the absence of significant prior-year impairment charges.
- 3The company completed eight acquisitions in 2021, demonstrating an ongoing strategy of growth through inorganic expansion.
- 4Remaining performance obligations (backlog) stood at a strong $5.6 billion as of December 31, 2021, providing visibility for future revenue.
- 5While overall gross profit increased, gross profit margins slightly declined to 15.2% in 2021 from 15.9% in 2020, impacted by supply chain disruptions and material cost escalations.
- 6The company repurchased approximately $195.5 million of its common stock in 2021 and maintained its quarterly dividend payment.
- 7The United States Industrial Services segment continues to face headwinds due to lingering impacts of the pandemic and adverse market conditions in the oil and gas sector, reporting an operating loss.