Emcor Group (EME) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this construction and maintenance company have returned +22.6% over the past month versus the Zacks S&P 500 composite's +9.8% change. The Zacks Building Products - Heavy Construction industry, to which Emcor Group belongs, has gained 18.6% over this period. Now the key question is: Where could the stock be head ...

The Zacks Building Products - Heavy Construction industry stands on a strong growth trajectory, supported by favorable long-term trends despite near-term headwinds such as elevated interest rates, project timing uncertainties, and labor market pressures.The outlook is especially bright, thanks to a robust federal infrastructure agenda that continues to unlock substantial investments in transportation, broadband, and energy networks. This surge in spending is fueling rising demand across high-growth sectors ...

EMCOR Group, Inc. (EME) reported impressive first-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.The quarter’s result reflects the benefits realized from the use of virtual design and construction technologies and prefabrication capabilities, along with the company’s focus on expanding into new geographies. Furthermore, the Miller Electric acquisition also boded well during the quarter, contributing to the revenue growth.During ...

News Release FOR: EMCOR GROUP, INC. CONTACT: Andrew G. Backman Vice President Investor Relations (203) 849-7938 FTI Consulting, Inc. Investors: Blake Mueller (718) 578-3706 EMCOR GROUP, INC. REPORTS FIRST QUARTER 2025 RESULTS Record Quarterly Revenues of $3.87 billion, 12.7% Increase Year-over-Year Record First Quarter Diluted EPS of $5.26; Non-GAAP Diluted EPS of $5.41 Record Remaining Performance Obligations of $11.75 billion, 28.1% Increase Year-over-Year Reaffirms 2025 Revenue Guidance Range of $16.1 bi ...

Financial Data and Key Metrics Changes - The company reported revenues of $3,870,000,000, reflecting a year-over-year growth of 12.7% [4][14] - Operating income was $318,800,000 with an operating margin of 8.2%, and diluted earnings per share increased by 26% to $5.26 [5][19] - Non-GAAP adjusted operating income was $328,100,000, or 8.5% of revenues, with non-GAAP adjusted diluted earnings per share of $5.41, representing a 29.7% increase [5][27] - Remaining performance obligations (RPOs) grew to $11,800,000,000, a 17.1% organic increase year-over-year, and a 28.1% increase including Miller Electric [10][11] Business Line Data and Key Metrics Changes - Electrical Construction segment revenues increased by 42% year-over-year, while Mechanical Construction segment revenues grew by 10.2% [5][15] - The Electrical Construction segment generated $1,090,000,000 in revenues, driven by data center projects and healthcare [15][20] - The Mechanical Construction segment reported revenues of $1,570,000,000, with significant growth in data centers and healthcare [15][16] - U.S. Building Services revenues decreased by 4.9% to $742,600,000, primarily due to reduced site-based revenues [17][18] - Industrial Services revenues increased by 1.4% to $359,000,000, impacted by a slower start to the turnaround season [18][24] Market Data and Key Metrics Changes - RPOs in networking communications (data centers) reached $3,600,000,000, up 112% year-over-year [11] - Healthcare RPOs increased by 38% year-over-year to $1,500,000,000, with Miller Electric contributing significantly [12] - Manufacturing and industrial RPOs grew by 31% year-over-year to $1,100,000,000 [12] - Hospitality and entertainment RPOs more than doubled year-over-year to $437,000,000 [12] Company Strategy and Development Direction - The company plans to continue focusing on mechanical services within the Building Services segment, aiming for an 80/20 split between mechanical and site-based services [58] - The integration of Miller Electric is on track, enhancing capabilities and expanding market opportunities [6][10] - The company is optimistic about managing tariff uncertainties and expects to pass on price increases to protect margins [30][31] - The company emphasizes continuous training and sharing best practices to navigate a volatile environment [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for services, as reflected in the growth of RPOs [31] - The company anticipates that the normalization of trade barriers will positively impact operations in the long term [31] - Management highlighted the importance of maintaining operating margins and managing costs effectively throughout the year [34] Other Important Information - The company reported a cash balance of just under $577,000,000, with $250,000,000 borrowed for working capital needs [28] - Operating cash flow was $108,500,000, down from $132,300,000 in the previous year, but still considered strong for Q1 [28][64] Q&A Session Summary Question: What are the operational risks related to tariffs or supply chain noise? - Management indicated that the guidance was more related to macroeconomic uncertainties rather than growth-related issues [40][42] Question: What is the outlook for high-tech manufacturing opportunities? - Management expressed optimism about growth in the pharma and semiconductor sectors, driven by reshoring trends [46][48] Question: How is Miller Electric impacting the Electrical segment margin? - Miller Electric is currently dilutive to the margin due to intangible asset amortization, but margins are expected to normalize over time [52] Question: What are the growth prospects for the data center business? - The company has seen increased demand for power and is expanding into more markets, with a balanced growth approach between existing and new markets [97][98] Question: How does the RPO growth compare to revenue growth guidance? - The RPO growth includes a higher percentage of long-term projects, with a mix of construction and mechanical services driving the growth [90][92]

EMCOR Group (EME) Q1 2025 Earnings Call April 30, 2025 10:30 AM ET Company Participants Andrew Backman - VP - Investor RelationsAnthony Guzzi - Chairman, President & CEOJason Nalbandian - Senior VP, CFO & Chief Accounting OfficerAdam Thalhimer - Director of ResearchBrian Brophy - Associate Vice PresidentAlex Dwyer - AVP - Equity ResearchAdam Bubes - Vice President, Equity Research Conference Call Participants Brent Thielman - MD & Senior Research Analyst Operator Good day, and welcome to EMCOR Group q one t ...

Emcor Group (EME) came out with quarterly earnings of $5.41 per share, beating the Zacks Consensus Estimate of $4.57 per share. This compares to earnings of $4.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.38%. A quarter ago, it was expected that this construction and maintenance company would post earnings of $5.54 per share when it actually produced earnings of $6.32, delivering a surprise of 14.08%.Over the last fou ...

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES Forward-Looking Statements First Quarter 2025 Earnings Call April 30, 2025 FIRST QUARTER 2025 FINANCIAL RESULTS This presentation and related press release contain forward-looking statements. Such statements speak only as of the date on the cover of this slide deck, and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements include statements regarding anticipated future ...

Financial Performance - Revenues for Q1 2025 reached $3,867,372, an increase of 12.7% compared to $3,432,276 in Q1 2024[15] - Gross profit for Q1 2025 was $722,718, representing a 22.5% increase from $589,309 in Q1 2024[15] - Net income for Q1 2025 was $240,677, up 22.0% from $197,149 in Q1 2024[15] - Basic earnings per share increased to $5.27 in Q1 2025, compared to $4.18 in Q1 2024, reflecting a 26.1% growth[15] - Operating income for Q1 2025 was $318,756, a 22.5% increase from $259,953 in Q1 2024[15] - Comprehensive income for Q1 2025 was $246,496, compared to $196,417 in Q1 2024, indicating a 25.5% increase[16] - Consolidated operating income for Q1 2025 was $318.8 million, up 22.6% from $259.9 million in Q1 2024[116] Cash Flow and Investments - Cash flows from operating activities for Q1 2025 were $108,471, a decrease from $132,264 in Q1 2024[18] - The company made significant investments in acquisitions, totaling $850,644 in Q1 2025, compared to only $100 in Q1 2024[18] - The cash balance at the end of Q1 2025 was $577,465, down from $842,487 at the end of Q1 2024[18] - Total capital expenditures for Q1 2025 were $26.1 million, a 28.8% increase from $20.3 million in Q1 2024[117] Revenue Recognition and Segments - The company recognizes revenue when it transfers promised goods or services to customers, applying a five-step model to determine revenue recognition[28] - Total segment revenues for the three months ended March 31, 2025, reached $3,867.4 million, a 12.7% increase from $3,432.3 million in the same period of 2024[52] - The United States electrical construction and facilities services segment generated revenues of $1,087.8 million, up from $764.7 million, representing a 42.4% year-over-year growth[50] - The United States mechanical construction and facilities services segment reported revenues of $1,572.6 million, an increase of 10.1% compared to $1,427.7 million in 2024[51] - The United States building services segment's revenues decreased to $742.6 million from $781.2 million, reflecting a decline of 4.9%[52] - The United States industrial services segment achieved revenues of $359.0 million, slightly up from $354.1 million, indicating a growth of 1.1%[52] Acquisitions and Goodwill - The acquisition of Miller Electric Company contributed $183.1 million in revenues and $12.7 million in operating income for the period from February 3, 2025, to March 31, 2025[67] - Total assets acquired in the recent acquisition amounted to $1,104,945 thousand, with identifiable intangible assets valued at $475,000 thousand[68] - Goodwill from the acquisition is calculated at $317,354 thousand, representing future economic benefits expected from the strategic acquisition[70] - The company acquired seven businesses in 2024 for a total upfront consideration of $231,100 thousand, including $61,900 thousand attributed to goodwill and $139,100 thousand to identifiable intangible assets[73] Debt and Financial Position - Total debt as of March 31, 2025, was $257,014 thousand, significantly up from $6,095 thousand as of December 31, 2024, primarily due to borrowings under the 2023 Revolving Credit Facility[78] - The company had $250,000 thousand in direct borrowings outstanding under the 2023 Revolving Credit Facility as of March 31, 2025, with no borrowings as of December 31, 2024[80] - Total assets increased to $8.08 billion as of March 31, 2025, compared to $7.72 billion at the end of 2024, reflecting a growth of 4.7%[118] Tax and Regulatory Matters - The income tax provision for the three months ended March 31, 2025, was $83,520, up from $70,567 in 2024, reflecting an increase of approximately 18.3%[93] - The effective income tax rate decreased to 25.8% for the three months ended March 31, 2025, compared to 26.4% in 2024, primarily due to favorable discrete tax items[94] - The company had no unrecognized income tax benefits as of March 31, 2025, and is currently under examination for tax returns from 2020 to 2023[95] Market Risks - The company is exposed to market risks related to fluctuations in commodity prices, particularly for materials like copper and steel, which could impact profitability[181]

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