8-KEarnings & ResultsExhibits & Filings

EMCOR Group, Inc. 8-K Report, Financial Results (Jul 26, 2007)

Filed July 26, 2007For Securities:EME

Summary

EMCOR Group, Inc. reported strong second quarter results for fiscal year 2007, exceeding investor expectations. The company announced record revenues of $1.41 billion, a 15.2% increase year-over-year, and a significant 55.1% jump in net income to $26.2 million, translating to $0.39 per diluted share. This performance was underpinned by a substantial 74.3% increase in operating income, which reached $44.2 million, improving the operating margin to 3.1% from 2.1% in the prior year. The company also highlighted a record contract backlog of $4.26 billion as of June 30, 2007, marking a 32.3% increase from the previous year. This robust backlog growth, particularly in the private sector commercial and hospitality/gaming segments, provides strong visibility and supports a raised full-year 2007 guidance for both revenues and diluted earnings per share. EMCOR's strategic focus on complex, systems-rich projects appears to be driving this positive momentum.

Key Highlights

  • 1Record second quarter revenues of $1.41 billion, up 15.2% year-over-year.
  • 2Net income surged 55.1% to $26.2 million, with diluted EPS of $0.39.
  • 3Operating income increased significantly by 74.3% to $44.2 million, improving operating margin to 3.1%.
  • 4Contract backlog reached a record $4.26 billion, a 32.3% increase year-over-year.
  • 5Strong growth in private sector commercial and hospitality/gaming segments contributing to backlog.
  • 6Full-year 2007 revenue guidance raised to $5.6B - $5.7B.
  • 7Full-year 2007 diluted EPS guidance increased to $1.48 - $1.60.

Frequently Asked Questions

For the second quarter of 2007, EMCOR reported revenues of $1.41 billion, a 15.2% increase from the prior year. Net income rose 55.1% to $26.2 million ($0.39 per diluted share), and operating income increased by 74.3% to $44.2 million. The operating margin improved to 3.1%.

EMCOR's contract backlog reached a record $4.26 billion at the end of Q2 2007, a 32.3% increase compared to the same period in 2006. This substantial growth, particularly in private sector commercial and hospitality/gaming contracts, suggests strong future revenue streams and operational activity.

Yes, based on the strong performance and market visibility, EMCOR has raised its full-year 2007 guidance. The company now anticipates revenues between $5.6 billion and $5.7 billion, and diluted earnings per share in the range of $1.48 to $1.60.

The significant increase in operating income was driven by strong revenue growth across domestic operations, particularly in the U.S. Mechanical and Electrical segments, along with robust performance in the facilities services segment. The company also emphasized its commitment to cost management, which created substantial leverage and boosted profits, coupled with an improving operating margin.