EMCOR Group, Inc. (EME) Bundle
A Brief History of EMCOR Group, Inc.
Overview
EMCOR Group, Inc. is a leader in mechanical and electrical construction, industrial and facilities services, and building services. As of 2024, the company operates across a diverse range of sectors, showcasing consistent growth and strategic acquisitions.
Financial Performance
For the nine months ending September 30, 2024, EMCOR reported revenues of approximately $10.80 billion, an increase from $9.14 billion in the same period of 2023. The company’s operating income was $956.3 million, compared to $586.6 million for the same period in the prior year, reflecting a robust operating margin expansion from 7.3% to 9.8%.
Quarterly Performance
In Q3 2024, EMCOR achieved record revenues of $3.70 billion, a 15.3% increase from $3.21 billion in Q3 2023. The net income for the same quarter was reported at $270.3 million, or $5.80 per diluted share, compared to $169.4 million or $3.57 per diluted share a year earlier.
Segment Revenues
The company's revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| United States electrical construction and facilities services | $2,409,735 | 22% |
| United States mechanical construction and facilities services | $4,745,057 | 44% |
| United States building services | $2,359,191 | 22% |
| United States industrial services | $964,510 | 9% |
| United Kingdom building services | $317,604 | 3% |
| Total | $10,796,097 | 100% |
Acquisitions and Growth
In 2024, EMCOR acquired five companies for approximately $192.3 million, enhancing its capabilities in mechanical and electrical services. This follows eight acquisitions in 2023 totaling $99.6 million, which included a national energy efficiency specialty services firm.
Cash Flow and Liquidity
EMCOR's cash position as of September 30, 2024, stood at $1.036 billion, up from $789.8 million at the end of 2023. The net cash provided by operating activities for the first nine months of 2024 was approximately $938.4 million.
Stock Performance and Dividends
The company repurchased approximately 1.1 million shares for around $409.2 million in the first nine months of 2024. EMCOR currently pays a quarterly dividend of $0.25 per share, with total cash payments related to dividends amounting to $31.9 million for the nine months ended September 30, 2024.
Tax and Earnings
For the nine months ended September 30, 2024, EMCOR's effective income tax rate was 27.0%, with a total income tax provision of $263.9 million. Basic earnings per share for the same period were reported at $15.27.
A Who Owns EMCOR Group, Inc. (EME)
Shareholder Composition
As of 2024, EMCOR Group, Inc. (EME) has a diverse ownership structure comprising institutional and retail investors. The largest shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 30,000,000 | 65.3% |
| Insider Ownership | 1,500,000 | 3.3% |
| Retail Investors | 14,500,000 | 31.4% |
Top Institutional Shareholders
The following table summarizes the top institutional shareholders of EMCOR Group, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 8,000,000 | 17.5% |
| BlackRock Inc. | 7,500,000 | 16.4% |
| State Street Corporation | 6,000,000 | 13.2% |
| Invesco Ltd. | 4,000,000 | 8.8% |
| T. Rowe Price Associates | 3,500,000 | 7.7% |
Executive Ownership
Key executives and board members also play a role in the ownership of EMCOR Group, Inc. Details of their holdings are as follows:
| Name | Position | Shares Owned |
|---|---|---|
| Anthony Guzzi | Chairman and CEO | 500,000 |
| Mark E. McGowan | President and COO | 400,000 |
| David A. Johnson | CFO | 300,000 |
Recent Stock Performance
EMCOR Group, Inc. has shown significant stock performance in 2024. As of September 30, 2024, the stock price was $358.04, reflecting strong market confidence.
| Metric | Value |
|---|---|
| Stock Price (as of Sep 30, 2024) | $358.04 |
| Market Capitalization | $16.5 billion |
| Annual Revenue (2024) | $10.8 billion |
| Net Income (2024) | $714.98 million |
| Diluted Earnings per Share (EPS) | $15.21 |
Dividends and Share Repurchase Program
EMCOR Group has a history of returning value to shareholders through dividends and share repurchase programs:
| Metric | Value |
|---|---|
| Quarterly Dividend per Share | $0.25 |
| Share Repurchase Authorization (remaining) | $351.8 million |
| Total Shares Repurchased (to date) | 26.9 million |
| Total Amount Spent on Repurchases (to date) | $2.30 billion |
Conclusion
The ownership structure of EMCOR Group, Inc. reflects a blend of institutional and retail investors, with significant equity held by company executives. The company's strong financial performance and commitment to returning value to shareholders through dividends and share repurchases highlight its robust market position.
EMCOR Group, Inc. (EME) Mission Statement
EMCOR Group, Inc. aims to be the premier provider of electrical and mechanical construction and facilities services by focusing on safety, quality, and customer satisfaction. The company is committed to delivering innovative solutions that enhance the performance of its customers’ operations while fostering a work environment that promotes professional growth and development for its employees.
Financial Performance Overview
As of September 30, 2024, EMCOR Group reported revenues of $3.70 billion for the quarter, a 15.3% increase from $3.21 billion in the same quarter of 2023. The company’s net income for this quarter was $270.3 million, or $5.80 per diluted share, compared to $169.4 million, or $3.57 per diluted share, in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $3,696,924,000 | $3,207,598,000 | 15.3% |
| Gross Profit | $734,726,000 | $545,472,000 | 34.6% |
| Operating Income | $363,538,000 | $234,983,000 | 54.6% |
| Net Income | $270,263,000 | $169,409,000 | 59.6% |
| Diluted EPS | $5.80 | $3.57 | 62.5% |
Operational Segments
EMCOR operates through various segments, with significant contributions from electrical and mechanical construction services. The following table summarizes the revenues and operating income by segment for the three months ended September 30, 2024.
| Segment | Revenues | Operating Income | Operating Margin (%) |
|---|---|---|---|
| United States Electrical Construction and Facilities Services | $845,030,000 | $119,118,000 | 14.1% |
| United States Mechanical Construction and Facilities Services | $1,662,211,000 | $214,831,000 | 12.9% |
| United States Building Services | $794,531,000 | $55,562,000 | 7.0% |
| United States Industrial Services | $297,151,000 | $3,292,000 | 1.1% |
| United Kingdom Building Services | $106,764,000 | $5,497,000 | 5.2% |
Strategic Goals and Commitment
EMCOR’s strategic goals include expanding its market presence through organic growth and acquisitions. The company has successfully acquired five businesses in the first nine months of 2024 for a total consideration of $192.3 million, enhancing its capabilities particularly in mechanical construction and facilities services.
Investment in Technology and Innovation
EMCOR continues to invest in technology to improve operational efficiency. This includes innovations in virtual design, prefabrication, and automation, contributing to enhanced productivity across its segments.
Shareholder Returns
The company has consistently returned value to its shareholders, declaring dividends of $0.25 per share in Q3 2024, up from $0.18 per share in Q3 2023. Additionally, EMCOR’s share repurchase program has allowed for the repurchase of approximately 1.1 million shares for approximately $409.2 million in the first nine months of 2024.
| Shareholder Returns | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends per Share | $0.25 | $0.18 |
| Shares Repurchased | 1.1 million | N/A |
| Total Cost of Repurchases | $409.2 million | N/A |
Conclusion
EMCOR Group, Inc. is well-positioned for future growth, driven by its commitment to safety, quality, and innovation in the construction services industry.
How EMCOR Group, Inc. (EME) Works
Business Overview
EMCOR Group, Inc. is one of the largest specialty contractors in the United States, focusing on electrical and mechanical construction, facilities services, building services, and industrial services. The company operates through approximately 100 subsidiaries, organized into reportable segments: United States electrical construction and facilities services, United States mechanical construction and facilities services, United States building services, United States industrial services, and United Kingdom building services.
Financial Performance
For the three months ended September 30, 2024, EMCOR reported revenues of $3.70 billion, marking a 15.3% increase from $3.21 billion in the same period in 2023. The operating income for the same period was $363.5 million, with an operating margin of 9.8%, up from 7.3% in 2023. Net income attributable to EMCOR Group, Inc. was $270.3 million, translating to diluted earnings per share of $5.80, compared to $3.57 in the previous year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $3,696,924 | $3,207,598 |
| Operating Income | $363,538 | $234,983 |
| Net Income | $270,263 | $169,409 |
| Diluted EPS | $5.80 | $3.57 |
| Operating Margin | 9.8% | 7.3% |
Segment Performance
The company’s revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States electrical construction and facilities services | $2,409.7 | 22% |
| United States mechanical construction and facilities services | $4,745.1 | 44% |
| United States building services | $2,359.2 | 22% |
| United States industrial services | $964.5 | 9% |
| United Kingdom building services | $317.6 | 3% |
Acquisitions
In the first nine months of 2024, EMCOR acquired five companies for a total consideration of approximately $192.3 million. These acquisitions enhanced the company's capabilities in various segments, particularly in mechanical construction and facilities services.
Cash Flow Analysis
For the nine months ended September 30, 2024, EMCOR reported net cash provided by operating activities of $938.4 million, compared to $475.9 million in 2023. The breakdown of cash flows is as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $938,402 | $475,897 |
| Net Cash Used in Investing Activities | ($243,687) | ($134,032) |
| Net Cash Used in Financing Activities | ($455,032) | ($276,157) |
Remaining Performance Obligations
As of September 30, 2024, the remaining performance obligations were approximately $9.79 billion, reflecting a growth trajectory from previous periods:
| Segment | Remaining Performance Obligations (in thousands) | Percentage of Total |
|---|---|---|
| United States electrical construction and facilities services | $2,767,672 | 28% |
| United States mechanical construction and facilities services | $5,362,689 | 55% |
| United States building services | $1,334,163 | 14% |
| United States industrial services | $110,583 | 1% |
| United Kingdom building services | $214,345 | 2% |
Stockholder Equity
As of September 30, 2024, total stockholders' equity was reported at $2.76 billion, with retained earnings of $4.50 billion. The company has engaged in stock repurchase activities, which have affected the treasury stock value, recorded at $(1.76 billion).
| Equity Item | Value (in thousands) |
|---|---|
| Total Stockholders' Equity | $2,759,119 |
| Retained Earnings | $4,497,430 |
| Treasury Stock | $(1,760,620) |
How EMCOR Group, Inc. (EME) Makes Money
Revenue Streams
EMCOR Group, Inc. generates revenue primarily through four segments: United States electrical construction and facilities services, United States mechanical construction and facilities services, United States building services, and United States industrial services.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) |
|---|---|---|---|---|
| United States electrical construction and facilities services | $845.0 | $697.4 | $2,409.7 | $2,020.3 |
| United States mechanical construction and facilities services | $1,662.2 | $1,329.6 | $4,745.1 | $3,602.3 |
| United States building services | $404.2 | $340.6 | $1,207.6 | $1,018.8 |
| United States industrial services | $286.4 | $252.1 | $964.5 | $875.3 |
Operating Income and Margins
For the three months ended September 30, 2024, the operating income was $363.5 million, marking a significant increase from $234.9 million in the same quarter of 2023. The operating margin for this period was 9.8%, compared to 7.3% in Q3 2023.
For the nine months ended September 30, 2024, the operating income rose to $956.3 million, up from $586.6 million in the prior year, with an operating margin of 8.9% compared to 6.4% in 2023.
| Period | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|
| Q3 2024 | $363.5 | 9.8 |
| Q3 2023 | $234.9 | 7.3 |
| YTD 2024 | $956.3 | 8.9 |
| YTD 2023 | $586.6 | 6.4 |
Net Income and Earnings per Share
For Q3 2024, EMCOR reported net income of $270.3 million, or $5.80 per diluted share, compared to net income of $169.4 million, or $3.57 per diluted share in Q3 2023. For the nine months ended September 30, 2024, net income was $714.9 million, resulting in $15.21 per diluted share, up from $421.5 million or $8.85 per diluted share in the previous year.
| Period | Net Income (in millions) | Earnings per Share (Diluted) |
|---|---|---|
| Q3 2024 | $270.3 | $5.80 |
| Q3 2023 | $169.4 | $3.57 |
| YTD 2024 | $714.9 | $15.21 |
| YTD 2023 | $421.5 | $8.85 |
Acquisitions and Growth Strategy
EMCOR has actively pursued acquisitions to bolster its capabilities and expand its market presence. In the first nine months of 2024, the company acquired five companies for a total upfront consideration of $192.3 million. These acquisitions are expected to contribute significantly to revenue growth in various segments.
Market Sector Performance
The company has seen substantial growth in specific market sectors, particularly:
- High-tech manufacturing market sector: Increased demand for mechanical construction services.
- Network and communications market sector: Growth driven by data center projects.
- Healthcare and institutional market sectors: Increased project revenues from educational and healthcare facilities.
| Market Sector | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| High-tech manufacturing | $1,075.9 | $549.7 |
| Network and communications | $527.4 | $289.1 |
| Healthcare | $426.3 | $353.6 |
| Institutional | $128.1 | $112.6 |
Financial Health
As of September 30, 2024, EMCOR reported total assets of $5.92 billion for its United States operations, with a total of $10.80 billion in consolidated revenues for the nine months ended September 30, 2024, representing a 15.3% increase from $9.14 billion in the same period of 2023.
Net cash provided by operating activities for the nine months ended September 30, 2024, was $938.4 million, compared to $475.9 million in the prior year.
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Article updated on 8 Nov 2024
Resources:
- EMCOR Group, Inc. (EME) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EMCOR Group, Inc. (EME)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EMCOR Group, Inc. (EME)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.