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Jun 30, 2020

Emcor Q2 2020 Earnings Report

Reported second quarter results with a decrease in revenue but demonstrated excellent execution during unprecedented times.

Key Takeaways

EMCOR Group, Inc. reported a decrease in revenues for the second quarter of 2020, totaling $2.01 billion, a 13.3% decrease year-over-year. The company reported a net loss of $83.7 million, or $(1.52) per diluted share, but a non-GAAP diluted EPS of $1.44. Remaining performance obligations grew 8.6% year-over-year to $4.59 billion.

Second quarter revenues decreased by 13.3% year-over-year to $2.01 billion.

Diluted loss per share was $(1.52), while non-GAAP diluted EPS was $1.44.

Record second quarter operating cash flow of $355.6 million was achieved.

Total remaining performance obligations increased by 8.6% year-over-year to $4.59 billion.

Total Revenue
$2.01B
Previous year: $2.32B
-13.3%
EPS
$1.44
Previous year: $1.49
-3.4%
Remaining Performance Obligation
$4.59B
Previous year: $4.23B
+8.5%
Gross Profit
$315M
Previous year: $346M
-9.0%
Cash and Equivalents
$481M
Previous year: $213M
+125.6%
Total Assets
$4.59B
Previous year: $4.39B
+4.5%

Emcor

Emcor

Emcor Revenue by Segment

Forward Guidance

EMCOR expects full-year 2020 revenues to be between $8.6 billion and $8.7 billion, and full-year 2020 non-GAAP diluted earnings per share in the range of $5.00 to $5.50.

Positive Outlook

  • Focus on elements of business in control.
  • Protecting the health and safety of employees.
  • Adjusting operations as necessary in a disciplined and process-oriented manner.
  • Growing remaining performance obligations.
  • Solid financial position.

Challenges Ahead

  • Guidance contingent on the environment remaining relatively consistent.
  • No widespread shutdowns, such as those experienced earlier this year.
  • Uncertainty surrounding the COVID-19 pandemic.
  • Impact on the economy.
  • Challenging environment in the U.S. Industrial Services segment due to COVID-19 and volatility in the oil and gas market.

Revenue & Expenses

Visualization of income flow from segment revenue to net income