EMCOR Q4 Earnings Surpass, Revenues Miss Estimates, Stock Up

Core Insights - EMCOR Group, Inc. reported mixed fourth-quarter 2024 results, with earnings exceeding estimates while revenues fell short, yet both metrics showed year-over-year growth [1][3] - Following the results announcement, EMCOR's shares increased by 5.4% [1] Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $6.32, surpassing the Zacks Consensus Estimate of $5.54 by 14.1% and reflecting a 41.4% increase from the previous year [3] - Revenues totaled $3.77 billion, missing the consensus estimate of $3.84 billion by 2.6%, but still representing a 9.6% year-over-year increase [3] - For the full year 2024, total revenues rose by 15.8% to $14.57 billion, and EPS increased by 61.7% to $21.52 [10] Segment Performance - U.S. Construction Services segment revenues grew by 16% year over year to $2.59 billion, with operating income increasing by 45% and margin expanding by 250 basis points to 14.2% [5] - Within U.S. Construction, the Electrical Construction and Facilities Services segment saw revenues rise by 22.2% to $933.2 million, with operating income surging by 93.9% [6] - The U.S. Building Services segment experienced a revenue decline of 2.8% to $755.6 million, while the U.K. Building Services segment's revenues fell by 0.8% to $107.9 million [7][8] Operating Highlights - Gross margin expanded by 210 basis points year over year to 20.1%, while operating margin increased by 190 basis points to 10.3% [9] - Selling, general and administrative expenses rose by 12.1% year over year to $368.5 million [9] Liquidity and Cash Flow - As of December 31, 2024, EMCOR had cash and cash equivalents of $1.34 billion, up from $789.8 million at the end of 2023 [11] - Net cash provided by operating activities was $1.41 billion in 2024, compared to $899.7 million in the prior year [11] - Remaining performance obligations increased by $1.25 billion year over year to $10.1 billion [11] 2025 Outlook - The company anticipates annual revenues between $16.1 billion and $16.9 billion, with EPS expected to range from $22.25 to $24.00 [12]