Group 1 - Emcor Group (EME) closed at $471.86, with a 0.77% increase, outperforming the S&P 500's 0.01% loss [1] - Over the past month, Emcor Group's shares gained 13.51%, exceeding the Construction sector's gain of 7.73% and the S&P 500's gain of 6.43% [1] Group 2 - Analysts expect Emcor Group to report earnings of $5.69 per share, reflecting a year-over-year growth of 8.38% [2] - The revenue forecast for the upcoming earnings report is $4.1 billion, indicating an 11.75% growth compared to the same quarter last year [2] Group 3 - For the annual period, earnings are anticipated to be $23.62 per share and revenue is expected to reach $16.5 billion, representing increases of 9.76% and 13.26% respectively [3] - Changes in analyst estimates for Emcor Group are important as they often indicate shifts in near-term business trends [3] Group 4 - The Zacks Rank system, which evaluates estimated changes, has a history of outperforming, with 1 stocks returning an average annual gain of 25% since 1988 [5] - Emcor Group currently holds a Zacks Rank of 2 (Buy) [5] Group 5 - Emcor Group has a Forward P/E ratio of 19.83, which aligns with the industry's average Forward P/E of 19.83 [6] - The Building Products - Heavy Construction industry, part of the Construction sector, ranks in the top 1% of all industries according to the Zacks Industry Rank [6]

Core Viewpoint - EMCOR Group, Inc. is benefiting from increasing infrastructural demand in the network and communications sector, particularly in data centers, healthcare, and water and wastewater markets [1] Financial Performance - Since the first-quarter 2025 earnings release, EME stock has increased by 12.2%, outperforming the broader Construction sector and the S&P 500 index [2] - The company raised the lower range of its non-GAAP diluted EPS for 2025 due to robust market trends [4] - The U.S. Construction segment contributed 68.8% to total revenues, growing by 21.3% year over year [9] - Operating income grew by 22.6% year over year, with operating margin expanding by 60 basis points to 8.2% [11] Return on Equity - EMCOR's trailing 12-month return on equity (ROE) is significantly better than the industry average, indicating efficient use of shareholders' funds [5] - Compared to peers, EMCOR's ROE is superior, with Quanta Services, Sterling Infrastructure, and MasTec showing ROEs of 18.1%, 26.6%, and 11.7% respectively [7] Market Drivers - Increased demand for data center infrastructure is driven by the rise in Artificial Intelligence applications and digital transformation initiatives [8] - The CHIPS and Science Act passed in 2022 supports investments in chip production and workforce development, further boosting demand [8] Operational Efficiency - EMCOR focuses on reducing its cost structure and improving operational performance through efficient project execution and a favorable mix of work [10] - The company aims to enhance operational efficiency in its U.S. Building services segment by leveraging profitability across HVAC retrofits and building automation projects [11] Capital Allocation - EMCOR's balanced capital allocation approach includes 42.4% of free cash allocated to acquisitions, 9.4% to capital expenditures, 4.6% to dividends, and 43.6% to share repurchases [13] - This strategy aims to maintain a balance between business reinvestments and shareholder returns [12] Earnings Estimates - Analysts have revised 2025 and 2026 earnings estimates upward due to favorable market fundamentals and operational efficiency improvements [14] - The earnings estimate for 2025 indicates a 9.8% year-over-year growth, while 2026 implies an 8.1% rise [15] Stock Performance - EME stock is trading above both the 50-day and 200-day simple moving averages, indicating a bullish trend [16] - The stock is currently trading at a premium compared to industry peers on a forward 12-month price-to-earnings (P/E) ratio basis [18] Analyst Recommendations - Analysts show optimism for EME stock, with three out of five recommendations indicating a "Strong Buy" [22] - Based on the discussed trends and technical indicators, EMCOR is considered a solid addition to investment portfolios [25]

Core Viewpoint - Emcor Group (EME) has shown strong stock performance recently, with a return of +22.6% over the past month, significantly outperforming the S&P 500 composite's +9.8% and the Zacks Building Products - Heavy Construction industry's +18.6% [2] Earnings Estimates - For the current quarter, Emcor Group is expected to report earnings of $5.69 per share, reflecting an increase of +8.4% year-over-year, with the Zacks Consensus Estimate having changed by +1.6% in the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $23.62, indicating a +9.8% change from the previous year, with a +1.1% adjustment over the last month [5] - For the next fiscal year, the consensus estimate is $25.54, which represents an +8.1% increase compared to the prior year, with a +0.6% change in the last month [6] Revenue Growth - The consensus sales estimate for the current quarter is $4.1 billion, indicating a year-over-year increase of +11.8% [11] - For the current fiscal year, the revenue estimate is $16.5 billion, reflecting a +13.3% change, while the next fiscal year's estimate of $17.26 billion indicates a +4.6% change [11] Recent Performance - In the last reported quarter, Emcor Group achieved revenues of $3.87 billion, a +12.7% increase year-over-year, and an EPS of $5.41 compared to $4.17 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +1.88% and for EPS by +18.38% [12] - Emcor Group has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [13] Valuation - Emcor Group has a Zacks Value Style Score of C, indicating it is trading at par with its peers [17] - The evaluation of the company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), suggests that its stock is fairly valued relative to its historical values and peers [15][16] Conclusion - The information presented indicates that Emcor Group may outperform the broader market in the near term, supported by its Zacks Rank 2 (Buy) [18]

Industry Overview - The Zacks Building Products - Heavy Construction industry is experiencing strong growth driven by favorable long-term trends, despite facing near-term challenges such as high interest rates and labor market pressures [1][8] - The industry includes mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on heavy civil construction projects like highways, bridges, and ports [3] Growth Drivers - A robust federal infrastructure agenda is unlocking significant investments in transportation, broadband, and energy networks, leading to increased demand in high-growth sectors [2] - The data center market's expansion is creating new opportunities for heavy construction companies, as demand for large-scale infrastructure solutions rises [5] - The ramp-up of 5G projects is benefiting industry players, with increased demand for wireline and wireless networks [6] Company Performance - EMCOR Group Inc. is benefiting from surging demand in data centers and healthcare, with a backlog of $11.8 billion reflecting strong long-term demand [32] - MasTec, with a backlog of $15.88 billion, has seen a 23.7% year-over-year increase, driven by growth across all segments [29] - Granite Construction has a record-high CAP of $5.7 billion, supported by federal and state infrastructure funding [21] Market Outlook - The industry's Zacks Industry Rank is 10, placing it in the top 4% of over 250 Zacks industries, indicating solid near-term prospects [10][11] - Aggregate earnings estimates for the industry have increased from $5.61 to $5.76 per share for 2025, reflecting growing analyst confidence [12] Recent Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, gaining 12.3% over the past year compared to the sector's 7.9% decline [14] - The industry's current forward P/E ratio is 17.43, lower than the S&P 500's 20.43, suggesting potential value [17]

Core Insights - EMCOR Group, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][3][6] - The company's performance benefited from virtual design and construction technologies, prefabrication capabilities, and the acquisition of Miller Electric [1][2] Financial Performance - Adjusted earnings per share (EPS) reached $5.41, surpassing the Zacks Consensus Estimate of $4.57 by 18.4%, compared to $4.17 in the same quarter last year [3] - Revenues totaled $3.87 billion, exceeding the consensus estimate of $3.8 billion by 1.9% and increasing 12.7% from $3.43 billion year-over-year [6] Segment Performance - U.S. Construction Services segment revenues grew 21.3% year-over-year to $2.66 billion, with operating income increasing by 33.2% and margin expanding to 12.1% [7] - U.S. Electrical Construction and Facilities Services revenues rose 42.3% year-over-year to $1.09 billion, with operating income up 48.6% and margin at 12.5% [8] - U.S. Mechanical Construction and Facilities Services revenues increased 10.2% year-over-year to $1.57 billion, with operating income rising 23.9% and margin at 11.9% [9] - U.S. Building Services revenues decreased 4.9% year-over-year to $742.6 million, while operating income grew 8.9% [9] - U.S. Industrial Services revenues inched up 1.4% year-over-year to $359 million, but operating income dropped 62.4% [10] - U.K. Building Services revenues increased 0.6% year-over-year to $105.3 million, with operating income falling 7.3% [10] Operating Metrics - Gross margin expanded 150 basis points year-over-year to 18.7%, while operating margin improved to 8.2% from 7.6% [11] - Selling, general and administrative expenses as a percentage of revenues increased by 80 basis points to 10.4% [11] Liquidity and Cash Flow - As of March 31, 2025, cash and cash equivalents stood at $576.7 million, down from $1.34 billion at the end of 2024 [12] - Net cash provided by operating activities was $108.5 million, compared to $132.3 million in the prior year [12] - Remaining performance obligations (RPOs) increased year-over-year to $11.75 billion from $9.18 billion [12] Outlook - EMCOR expects annual revenues to be between $16.1 billion and $16.9 billion, with EPS projected in the range of $22.65 to $24.00 [13]

[First Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) This section details EMCOR's record Q1 2025 revenues, net income, and EPS, alongside strong operating performance, record RPOs, and segment-specific contributions [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) EMCOR Group, Inc. reported record revenues and diluted EPS for Q1 2025, driven by strong year-over-year growth, with non-GAAP figures adjusted for acquisition-related transaction costs | Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | YoY Change | Q1 2025 (Non-GAAP) | | :-------------------------------- | :------------- | :------------- | :--------- | :----------------- | | Revenues | $3.87 billion | $3.43 billion | +12.7% | - | | Net Income | $240.7 million | $197.1 million | +22.1% | $247.6 million | | Diluted EPS | $5.26 | $4.17 | +26.1% | $5.41 | - Q1 2025 net income included **$9.4 million ($6.9 million after taxes)** in transaction-related costs from the Miller Electric Company acquisition[2](index=2&type=chunk) [Operating Performance and Margins](index=1&type=section&id=Operating%20Performance%20and%20Margins) Operating income and margin improved significantly in Q1 2025 on both GAAP and non-GAAP bases, reflecting strong operational execution | Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | YoY Change | Q1 2025 (Non-GAAP) | | :-------------------------------- | :------------- | :------------- | :--------- | :----------------- | | Operating Income | $318.8 million | $260.0 million | +22.6% | $328.1 million | | Operating Margin | 8.2% | 7.6% | +0.6 pp | 8.5% | | SG&A Expenses | $404.0 million | $329.4 million | +22.6% | - | | SG&A as % of Revenues | 10.4% | 9.6% | +0.8 pp | - | | Income Tax Rate | 25.8% | 26.4% | -0.6 pp | - | - Operating income for Q1 2025 included depreciation and amortization expense of **$41.9 million**, up from $29.6 million in Q1 2024[3](index=3&type=chunk) [Remaining Performance Obligations (RPOs)](index=2&type=section&id=Remaining%20Performance%20Obligations%20(RPOs)) EMCOR achieved record remaining performance obligations (RPOs) of $11.75 billion as of March 31, 2025, representing a substantial year-over-year increase | Metric | As of March 31, 2025 | As of March 31, 2024 | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Total RPOs | $11.75 billion | $9.18 billion | +28.1% | | RPOs from Miller Electric | $1.0 billion | - | - | - Significant RPO growth was seen in Network and Communications, Healthcare, Manufacturing and Industrial, Hospitality and Entertainment, and Institutional sectors[7](index=7&type=chunk) - Reductions in RPOs within High-Tech Manufacturing and Commercial market sectors were due to progress on construction projects[7](index=7&type=chunk) [Segment-Specific Performance](index=2&type=section&id=Segment-Specific%20Performance) U.S. Electrical and Mechanical Construction segments drove revenue and operating income growth, with Miller Electric significantly contributing to the former Q1 2025 Segment Revenues (YoY Change) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | YoY Change | | :------------------------------------------ | :-------------- | :-------------- | :--------- | | U.S. Electrical Construction & Facilities Services | $1,087.8 million | $764.7 million | +42.3% | | U.S. Mechanical Construction & Facilities Services | $1,572.6 million | $1,427.7 million | +10.2% | | U.S. Building Services | $742.6 million | $781.2 million | -4.9% | | U.S. Industrial Services | $359.0 million | $354.1 million | +1.4% | | U.K. Building Services | $105.3 million | $104.7 million | +0.6% | Q1 2025 Segment Operating Income and Margin | Segment | Q1 2025 Operating Income | Q1 2025 Operating Margin | | :------------------------------------------ | :----------------------- | :----------------------- | | U.S. Electrical Construction & Facilities Services | $136.1 million | 12.5% | | U.S. Mechanical Construction & Facilities Services | $186.7 million | 11.9% | | U.S. Building Services | $36.4 million | 4.9% | | U.S. Industrial Services | $6.8 million | 1.9% | | U.K. Building Services | $5.0 million | 4.7% | - The acquisition of Miller Electric contributed **$183 million in revenues** to the U.S. Electrical Construction segment during the quarter[8](index=8&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) This section outlines EMCOR's reaffirmed full-year revenue guidance and narrowed non-GAAP diluted EPS range, reflecting confidence in future performance [2025 Outlook and Reaffirmations](index=2&type=section&id=2025%20Outlook%20and%20Reaffirmations) EMCOR reaffirmed its full-year 2025 revenue guidance range and narrowed its non-GAAP diluted EPS guidance range, reflecting confidence in execution Full-Year 2025 Guidance | Metric | Current Guidance (4/30/25) | Previous Guidance (2/26/25) | | :-------------------- | :------------------------- | :------------------------- | | Revenues | $16.1 billion - $16.9 billion | $16.1 billion - $16.9 billion | | Operating Margin | 8.5% - 9.2% | 8.5% - 9.2% | | Non-GAAP Diluted EPS* | $22.65 - $24.00 | $22.25 - $24.00 | - The guidance reflects confidence in the company's ability to execute with efficiency and discipline, considering potential impacts of tariffs and macroeconomic factors[10](index=10&type=chunk) - The company remains well positioned with a significant year-over-year increase in RPOs and a healthy project pipeline[10](index=10&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) This section presents the CEO's insights on strong Q1 performance, strategic drivers, successful acquisitions, and future segment expectations [CEO's Remarks on Performance and Strategy](index=2&type=section&id=CEO's%20Remarks%20on%20Performance%20and%20Strategy) CEO Tony Guzzi highlighted the continued strength of the business, driven by U.S. Electrical and Mechanical Construction segments, successful execution, and strategic expansion - Results were driven by U.S. Electrical Construction and U.S. Mechanical Construction segments, with year-over-year revenue growth of **42.3%** and **10.2%**, respectively[8](index=8&type=chunk) - Performance reflects customer confidence, proactive expansion into new geographies, and productivity from virtual design and construction technologies and prefabrication capabilities[8](index=8&type=chunk) - The integration of Miller Electric is on track, contributing **$183 million in revenues** to the U.S. Electrical Construction segment[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section provides the condensed consolidated statements of operations, balance sheets, and cash flows for Q1 2025, detailing financial position and performance [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a significant increase in revenues, gross profit, and operating income for Q1 2025 compared to Q1 2024 Condensed Consolidated Statements of Operations (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Revenues | $3,867,372 | $3,432,276 | | Cost of sales | $3,144,654 | $2,842,967 | | Gross profit | $722,718 | $589,309 | | Selling, general and administrative expenses | $403,962 | $329,356 | | Operating income | $318,756 | $259,953 | | Income before income taxes | $324,197 | $267,716 | | Net income | $240,677 | $197,149 | | Diluted earnings per common share | $5.26 | $4.17 | | Dividends declared per common share | $0.25 | $0.18 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows an increase in total assets, primarily driven by higher accounts receivable, goodwill, and identifiable intangible assets Condensed Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------- | :----------------------------- | | Total current assets | $4,910,984 | $5,389,189 | | Goodwill | $1,336,557 | $1,018,415 | | Identifiable intangible assets, net | $1,096,817 | $648,180 | | Total assets | $8,078,872 | $7,716,473 | | Total current liabilities | $4,222,262 | $4,153,863 | | Borrowings under revolving credit facility | $250,000 | $0 | | Total liabilities | $5,126,944 | $4,777,779 | | Total equity | $2,951,928 | $2,938,694 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows from operating activities decreased in Q1 2025, while investing activities saw a significant net cash outflow due to business acquisitions Condensed Consolidated Statements of Cash Flows (Q1 2025 vs. Q1 2024) | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash provided by operating activities | $108,471 | $132,264 | | Net cash used in investing activities | $(875,441) | $(19,439) | | Net cash used in financing activities | $(829) | $(58,948) | | (Decrease) increase in cash, cash equivalents, and restricted cash | $(762,930) | $52,737 | | Cash, cash equivalents, and restricted cash at end of period | $577,465 | $842,487 | - Payments for acquisitions of businesses, net of cash acquired, totaled **$850.6 million** in Q1 2025[21](index=21&type=chunk) - Repurchases of common stock amounted to **$224.8 million** in Q1 2025[21](index=21&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures, including organic revenue growth, operating income, net income, and diluted EPS, to their GAAP equivalents [Organic Revenue Growth Reconciliation](index=8&type=section&id=Organic%20Revenue%20Growth%20Reconciliation) EMCOR provides a reconciliation of organic revenue growth, a non-GAAP measure, to total GAAP revenue growth, illustrating the impact of acquisitions on overall revenue expansion Organic Revenue Growth Reconciliation (Q1 2025) | Metric | Amount (in thousands) | Percentage | | :-------------------------------- | :-------------------- | :--------- | | GAAP revenue growth | $435,096 | 12.7% | | Incremental revenues from acquisitions | $(250,900) | (7.3)% | | Organic revenue growth (non-GAAP) | $184,196 | 5.4% | [Non-GAAP Operating Income, Net Income, and Diluted EPS Reconciliation](index=10&type=section&id=Non-GAAP%20Operating%20Income%2C%20Net%20Income%2C%20and%20Diluted%20EPS%20Reconciliation) Reconciliations are provided for non-GAAP operating income, net income, and diluted EPS, adjusting for transaction expenses related to the Miller Electric acquisition Non-GAAP Operating Income Reconciliation (Q1 2025) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :------------------------------------------------ | :--------------------- | :--------------------- | | GAAP operating income | $318,756 | $259,953 | | Transaction expenses related to Miller Electric acquisition | $9,353 | - | | Non-GAAP operating income | $328,109 | $259,953 | Non-GAAP Net Income Reconciliation (Q1 2025) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :------------------------------------------------ | :--------------------- | :--------------------- | | GAAP net income | $240,677 | $197,149 | | Transaction expenses related to Miller Electric acquisition | $9,353 | - | | Tax effect of transaction expenses | $(2,410) | - | | Non-GAAP net income | $247,620 | $197,149 | Non-GAAP Diluted EPS Reconciliation (Q1 2025) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------------------ | :------ | :------ | | GAAP diluted earnings per common share | $5.26 | $4.17 | | Transaction expenses related to Miller Electric acquisition | $0.20 | - | | Tax effect of transaction expenses | $(0.05) | - | | Non-GAAP diluted earnings per common share | $5.41 | $4.17 | [Additional Information](index=3&type=section&id=Additional%20Information) This section offers an overview of EMCOR Group, Inc., along with important disclaimers regarding forward-looking statements and the use of non-GAAP financial measures [About EMCOR](index=3&type=section&id=About%20EMCOR) EMCOR Group, Inc. is a Fortune 500 company specializing in mechanical and electrical construction services, industrial and energy infrastructure, and building services - EMCOR Group, Inc. is a Fortune 500 leader in mechanical and electrical construction services, industrial and energy infrastructure, and building services[12](index=12&type=chunk) [Forward-Looking Statements & Non-GAAP Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Disclosure) This section provides standard disclaimers regarding forward-looking statements, outlining risks and uncertainties, and explains the use of non-GAAP financial measures - Forward-looking statements include anticipated future operating and financial performance, financial guidance, impact of RPOs, timing of projects, and financial impact of acquisitions[13](index=13&type=chunk) - Risks and uncertainties include adverse economic conditions, market changes, labor scarcity, supply chain disruptions, inflation, regulatory impacts, and increased competition[13](index=13&type=chunk) - Non-GAAP measures are used as key performance indicators for internal evaluation and to provide useful information to investors, but are not GAAP substitutes and may not be comparable to other companies' calculations[14](index=14&type=chunk)

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]

Financial Data and Key Metrics Changes - The company reported revenues of $3,870,000,000, reflecting a year-over-year growth of 12.7% [5][15] - Operating income was $318,800,000 with an operating margin of 8.2%, and diluted earnings per share were $5.26, representing a 26% increase from the first quarter of 2024 [6][20] - 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, an increase of 29.7% [6][27] 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% [6][16] - The Electrical Construction segment generated $1,090,000,000 in revenues, driven by data center projects and healthcare [16][21] - Mechanical Construction revenues were $1,570,000,000, with significant growth in data centers and healthcare [17][21] Market Data and Key Metrics Changes - 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 [11][12] - RPOs in networking communications (data centers) reached $3,600,000,000, up nearly 112% year-over-year [12][13] - Healthcare RPOs increased by 38% year-over-year to $1,500,000,000, with Miller contributing significantly [13] Company Strategy and Development Direction - The company plans to continue focusing on mechanical services, shifting the revenue mix from site-based services to mechanical services [62] - The integration of Miller Electric is on track, enhancing capabilities in key market sectors [8][11] - The company aims to manage tariff uncertainties and supply chain disruptions proactively while maintaining strong operating margins [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's growth prospects despite macroeconomic uncertainties, emphasizing strong demand reflected in RPOs [32][34] - The company anticipates continued growth in high-tech manufacturing, particularly in pharmaceuticals and semiconductors, driven by reshoring trends [47][51] - Management highlighted the importance of maintaining operational discipline and cost management to navigate potential challenges [34][65] Other Important Information - The company reported a cash balance of just under $577,000,000 after the Miller Electric acquisition and share repurchases [28] - Operating cash flow was $108,500,000, down from $132,300,000 in the previous year, but still strong for the first quarter [28][66] Q&A Session Summary Question: Clarification on guidance range and operational risks - Management indicated that the guidance range reflects macroeconomic uncertainties rather than growth-related concerns, with confidence in maintaining margins [41][44] Question: Opportunities in high-tech manufacturing - Management expressed optimism about growth in pharmaceuticals and semiconductors, anticipating increased spending in the coming years [47][51] Question: Impact of Miller Electric on Electrical segment margins - It was noted that Miller Electric is currently dilutive to margins due to intangible asset amortization, but strong margins are expected once this is excluded [53] Question: Future direction of Building Services segment - The focus will be on mechanical services, with a shift in revenue mix expected to favor this area significantly [61][62] Question: Data center business growth sources - Growth has primarily been organic, with a balanced contribution from existing and new markets [102] Question: EPS guidance and contributing factors - Guidance considers the impact of Miller and transaction expenses, with a wide range due to macroeconomic uncertainties [75][76]

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 ...