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Mar 31, 2020

Emcor Q1 2020 Earnings Report

EMCOR Group reported record first quarter with revenue increase of 6.5% year-over-year.

Key Takeaways

EMCOR Group reported a record first quarter with revenues of $2.30 billion, a 6.5% increase year-over-year. Diluted EPS reached a record $1.35, a 5.5% increase year-over-year. The company's remaining performance obligations totaled $4.42 billion, a 6.4% increase year-over-year.

Achieved record first quarter revenues, operating income, net income, and diluted earnings per share.

Delivered revenue growth of 6.5%, with 2.7% organic growth led by U.S. Mechanical Construction and U.S. Industrial Services.

U.S. Construction segments delivered solid results with combined revenue and operating income growth of 6.2% and 6.1%, respectively.

Experienced certain disruptions caused by the pandemic late in the first quarter and expect continued headwinds going into the second and possibly into the third quarter.

Total Revenue
$2.3B
Previous year: $2.16B
+6.5%
EPS
$1.35
Previous year: $1.28
+5.5%
Remaining Performance Obligation
$4.42B
Previous year: $4.16B
+6.3%
Gross Profit
$333M
Previous year: $309M
+7.9%
Cash and Equivalents
$347M
Previous year: $252M
+37.7%
Total Assets
$4.84B
Previous year: $4.28B
+13.0%

Emcor

Emcor

Emcor Revenue by Segment

Forward Guidance

The company expects continued headwinds going into the second quarter and possibly into the third quarter due to the COVID-19 pandemic. They are well-positioned to continue to serve their customers during this crisis and when the environment normalizes.

Positive Outlook

  • Focusing on elements of business within control.
  • Reacting to macroeconomic disruptions in a disciplined and process-oriented manner.
  • Implemented strict safety protocols for employees.
  • Reducing costs where appropriate.
  • Continue to perform work for customers where they are able to operate.

Challenges Ahead

  • Abrupt drop in activity due to the COVID-19 pandemic.
  • Expect continued headwinds going into the second quarter.
  • Expect continued headwinds possibly into the third quarter.
  • Certain disruptions caused by the pandemic.
  • Associated containment and mitigation measures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income