01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group, Inc. reported a strong financial performance for the fiscal year ended December 31, 2024, with record revenues of $14.57 billiona, 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 billionb, 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 millionc 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.
02—Key points
Key Highlights
- Record revenues of $14.57 billion for fiscal year 2024, an increase of 15.8% from 2023.
- Record operating income of $1.34 billion, with an operating margin of 9.2%, an improvement from 7.0% in 2023.
- Strong 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.
- Backlog (remaining performance obligations) increased to $10.10 billion as of December 31, 2024, up from $8.85 billion in the prior year.
- Significant investment in growth through the acquisition of seven companies in 2024 for $231.1 million.
- Consistent shareholder returns with a quarterly dividend of $0.25 per share and continued share repurchases.
- Maintained a strong liquidity position with $1.34 billion in cash and cash equivalents and substantial credit facility availability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, EMCOR Group kept $0.07.
- Revenue$14.57B100.0%
- Cost of revenue−$11.80B81.0%
- Gross profit$2.77B19.0%
- Operating costs−$1.42B9.7%
- Operating income$1.34B9.2%
- Interest, other & tax−$337.7M2.3%
- Net income$1.01B6.9%
Where FY2024 revenue went
$14.57B- Cost of revenue: $11.80B, 81% of revenue
- Net income: $1.01B, 6.9% of revenue
- SG&A: $1.42B, 9.7% of revenue
- Interest, other & tax: $337.7M, 2.3% of revenue
Kept 6.9% as net incomeNet income $1.01B · 6.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 26, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $14.57B$12.58B | +15.8% |
| Cost of Revenue | $11.80B$10.49B | +12.5% |
| Gross Profit | $2.77B$2.09B | +32.3% |
| SG&A Expenses | $1.42B$1.21B | +17.3% |
| Operating Income | $1.34B$875.76M | +53.6% |
| Interest Expense | $3.78M$17.20M | −78.0% |
| Net Income | $1.01B$632.99M | +59.1% |
| EPS (Basic) | $21.61$13.37 | +61.6% |
| EPS (Diluted) | $21.52$13.31 | +61.7% |
| Shares Outstanding (Basic) | 46.62M47.36M | −1.6% |
| Shares Outstanding (Diluted) | 46.81M47.56M | −1.6% |
05—Questions
Frequently Asked Questions
What were EMCOR's key financial drivers in 2024?
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.
How is EMCOR positioned for future growth based on its backlog?
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.
What is EMCOR's approach to capital allocation and shareholder returns?
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.
What are the main risks EMCOR faces that could impact its financial performance?
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.
06—Continue