EMCOR(EME) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for Q1 2025 reached $3,867,372, an increase of 12.7$3,432,276 in Q1 2024[15] - Gross profit for Q1 2025 was $722,718, representing a 22.5$589,309 in Q1 2024[15] - Net income for Q1 2025 was $240,677, up 22.0$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$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$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$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$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$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$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]