Summary
EMCOR Group, Inc. reported strong financial results for the third quarter of 2018, achieving record quarterly revenues, operating income, net income attributable to EMCOR Group, Inc., and diluted earnings per common share from continuing operations. This performance was driven by broad-based revenue growth across all reportable segments and an increase in operating income in most segments, notably the United States industrial services segment recovering from prior-year impacts. The company also benefited from the reduction in the U.S. federal corporate tax rate due to the Tax Cuts and Jobs Act. Despite overall positive trends, the company experienced a slight decrease in its consolidated operating margin, primarily due to a loss on a transportation construction project in the United States electrical construction and facilities services segment. However, this was partially offset by improved operating margins in other segments. The company's backlog of remaining performance obligations stands at a healthy $3.97 billion as of September 30, 2018, indicating strong future revenue potential. EMCOR continues to actively manage its capital structure, including share repurchases and dividend payments, while maintaining compliance with its credit agreement covenants.
Financial Highlights
50 data points| Revenue | $2.05B |
| Cost of Revenue | $1.74B |
| Gross Profit | $309.34M |
| SG&A Expenses | $197.33M |
| Operating Income | $111.78M |
| Interest Expense | $3.59M |
| Net Income | $79.37M |
| EPS (Basic) | $1.36 |
| EPS (Diluted) | $1.35 |
| Shares Outstanding (Basic) | 58.21M |
| Shares Outstanding (Diluted) | 58.54M |
Key Highlights
- 1Achieved record quarterly revenues of $2.05 billion, up 8.5% year-over-year.
- 2Reported record quarterly operating income of $111.8 million, an increase of 5.4% year-over-year.
- 3Net income attributable to EMCOR Group, Inc. reached a quarterly record of $79.4 million, a significant increase from $64.6 million in the prior year.
- 4Diluted EPS from continuing operations hit a record $1.36, up from $1.09 in Q3 2017.
- 5The company's backlog of remaining unsatisfied performance obligations was robust at $3.97 billion as of September 30, 2018.
- 6Operating margin saw a slight decrease to 5.5% from 5.6%, impacted by a specific project loss, but this was offset by improvements in other segments.
- 7The adoption of ASC 606, "Revenue from Contracts with Customers," was completed, with a minimal impact on retained earnings.