10-KPeriod: FY2024

EMCOR Group, Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 26, 2025For Securities:EME

Summary

EMCOR Group, Inc. reported a strong financial performance for the fiscal year ended December 31, 2024, with record revenues of $14.57 billion, a 15.8% increase year-over-year. This growth was broad-based, driven by robust demand across most of its market sectors, particularly in data center construction and high-tech manufacturing. The company also achieved record operating income of $1.34 billion, with an operating margin of 9.2%, a significant improvement from the prior year. This performance reflects improved project execution, a favorable revenue mix, and strategic investments in technology. Acquisitions contributed approximately $251.5 million to revenues in 2024, demonstrating the company's continued inorganic growth strategy. EMCOR's backlog, or remaining performance obligations, stands at $10.10 billion, indicating continued strong future revenue potential, especially within its construction segments, driven by data center and healthcare projects. The company also maintained a strong liquidity position with $1.34 billion in cash and cash equivalents and ample availability under its credit facility. EMCOR's commitment to shareholder returns is evident through its consistent quarterly dividend and ongoing share repurchase program. The company's focus on operational excellence, safety, and strategic acquisitions positions it well for continued growth.

Financial Highlights

50 data points
Beta

Revenue

$14.57B

19.0% Gross Margin

Net Income

$1.01B

6.9% Net Margin

EPS (Diluted)

$21.52

Total Assets

$7.72B

Cash & Equivalents

$1.34B

Free Cash Flow

$1.41B

Financial Statements
Beta
Revenue$14.57B
Cost of Revenue$11.80B
Gross Profit$2.77B
SG&A Expenses$1.42B
Operating Income$1.34B
Interest Expense$3.78M
Net Income$1.01B
EPS (Basic)$21.61
EPS (Diluted)$21.52
Shares Outstanding (Basic)46.62M
Shares Outstanding (Diluted)46.81M

Key Highlights

  • 1Record revenues of $14.57 billion for fiscal year 2024, an increase of 15.8% from 2023.
  • 2Record operating income of $1.34 billion, with an operating margin of 9.2%, an improvement from 7.0% in 2023.
  • 3Strong growth in both United States electrical construction and facilities services (up 19.4%) and United States mechanical construction and facilities services (up 26.2%), driven by data centers and high-tech manufacturing.
  • 4Backlog (remaining performance obligations) increased to $10.10 billion as of December 31, 2024, up from $8.85 billion in the prior year.
  • 5Significant investment in growth through the acquisition of seven companies in 2024 for $231.1 million.
  • 6Consistent shareholder returns with a quarterly dividend of $0.25 per share and continued share repurchases.
  • 7Maintained a strong liquidity position with $1.34 billion in cash and cash equivalents and substantial credit facility availability.

Frequently Asked Questions

EMCOR's financial performance in 2024 was driven by strong demand across its service sectors, leading to record revenues of $14.57 billion. Key growth areas included data center construction and high-tech manufacturing, fueling significant increases in its United States electrical and mechanical construction segments. Improved project execution and a favorable revenue mix also contributed to a record operating income of $1.34 billion with a 9.2% operating margin.

EMCOR's remaining performance obligations (backlog) stood at $10.10 billion at the end of 2024, up from $8.85 billion in the prior year. This increase, particularly within the construction segments, reflects strong demand from data center and healthcare projects, indicating a robust pipeline of future revenue and supporting the company's growth outlook.

EMCOR aims for a balanced approach to capital allocation, prioritizing investment in growth strategies through acquisitions and capital expenditures, while also returning value to shareholders. The company consistently pays a quarterly dividend of $0.25 per share and actively engages in share repurchases, demonstrating a commitment to shareholder returns. As of December 31, 2024, approximately $259.5 million remained authorized for share repurchases.

EMCOR faces several risks including economic downturns impacting client spending, competition, potential labor shortages and rising labor costs, volatility in commodity prices and supply chain disruptions, and the cyclical nature of its end markets. Regulatory changes, project cancellations, and cybersecurity threats are also noted risks. The company's extensive list of risk factors, detailed in its filings, highlights these potential challenges.