Summary
EMCOR Group, Inc. reported strong revenue growth in 2022, reaching a new annual record of $11.1 billion, an increase of 11.8% from the prior year. This growth was driven by broad-based demand across most of its service segments, particularly in United States construction and building services. Despite this top-line expansion, the company experienced a slight decrease in its gross profit margin to 14.5% from 15.2% in the prior year, largely due to a less favorable project mix and specific project losses within its U.S. construction segments. These margin pressures were partly offset by improved operating leverage in selling, general, and administrative expenses. Looking ahead, EMCOR faces ongoing challenges including supply chain disruptions, inflation, and rising interest rates, which are impacting material costs, labor productivity, and project scheduling. The company is actively managing these challenges through enhanced planning, pricing adjustments, and supplier relationships. EMCOR's strong backlog, reflected in its remaining performance obligations of $7.46 billion, indicates continued demand for its services, providing a solid foundation for future revenue generation. The company also continues its commitment to shareholder returns through dividends and share repurchases.
Financial Highlights
51 data points| Revenue | $11.08B |
| Cost of Revenue | $9.47B |
| Gross Profit | $1.60B |
| SG&A Expenses | $1.04B |
| Operating Income | $564.88M |
| Interest Expense | $13.20M |
| Net Income | $406.12M |
| EPS (Basic) | $8.13 |
| EPS (Diluted) | $8.10 |
| Shares Outstanding (Basic) | 49.93M |
| Shares Outstanding (Diluted) | 50.14M |
Key Highlights
- 1Achieved record revenues of $11.1 billion in 2022, an 11.8% increase year-over-year, driven by strong demand across most segments.
- 2Experienced a slight compression in gross profit margin to 14.5% (from 15.2% in 2021) due to project mix and specific losses, impacting U.S. construction segments.
- 3Operating income increased to $564.9 million, though operating margin slightly decreased to 5.1% from 5.4% due to lower gross margins.
- 4Net income attributable to EMCOR increased to $406.1 million, or $8.10 per diluted share, benefiting from higher revenues and reduced share count.
- 5Remaining performance obligations (backlog) grew significantly to $7.46 billion, indicating strong future demand for services.
- 6Acquired six companies in 2022 for $100.8 million, enhancing service offerings and geographic presence.
- 7Increased quarterly dividend by 20% to $0.18 per share, signaling confidence in future performance and commitment to shareholder returns.