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EMCOR Group, Inc. EME reported impressive third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.
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The upside was backed by innovation and high-demand projects, particularly in data centers, semiconductor plants, and institutional sectors.
Owing to this solid performance, the company raised its financial guidance for 2024. Following the results, shares of EMCOR gained 3.3% during the trading session yesterday.
More on EME’s Q3 Results
EME reported adjusted earnings per share (EPS) of $5.80, surpassing the Zacks Consensus Estimate of $4.99 by 16.2%. The metric also increased 60.7% from the year-ago quarter’s figure of $3.61.
Revenues of $3.70 billion surpassed the consensus mark of $3.68 billion by 0.4% and increased 15.3% year over year. Strength across the segments helped the company achieve 12.6% higher organic revenues.
EMCOR Group, Inc. Price, Consensus and EPS Surprise
EMCOR Group, Inc. price-consensus-eps-surprise-chart | EMCOR Group, Inc. Quote
EMCOR’s Segment Details
EMCOR currently operates in four reportable segments, which are U.S. Construction Services (Electrical and Mechanical Construction and Facilities Services), U.S. Building Services, U.S. Industrial Services and U.K. Building Services.
U.S. Construction Services: This segment's revenues rallied 15.9% year over year to $3.59 billion. The company witnessed strong demand across many of the markets served. The segment’s operating income appreciated 51.9%. The margin expanded 260 basis points (bps) year over year to 10.9%.
Within the U.S. Construction umbrella, the U.S. Electrical Construction and Facilities Services segment’s revenues increased 21.2% year over year to $845 million. Operating income surged 88.7% and margin expanded 500 bps year over year to 14.1%. The U.S. Mechanical Construction and Facilities Services segment’s revenues rose 25% year over year to $1.66 billion. The segment’s operating income rose 55.2%, and its margin expanded 250 bps year over year to 12.9%.
The U.S. Building Services: Revenues in the segment were down 2.5% from the prior-year quarter’s levels to $796.9 million. The downside was due to the non-renewal of certain facilities maintenance contracts. Operating income declined 2.8% year over year and the margin was flat at 7%.
U.S. Industrial Services: This segment’s revenues increased 13.6% year over year to $286.4 million. EMCOR continues to see improved demand for its services. Operating income of the segment was $3.29 billion against a loss of $0.2 million a year ago. Operating margin was 1.1% in the quarter.
U.K. Building Services: This segment’s revenues declined 4% from the year-ago quarter to $106.4 million. Also, the segment’s operating income decreased 38%, and the margin fell 280 bps to 5.2% year over year. Although project revenues held steady this quarter, the U.K. experienced a less favorable work mix for margins, as last year’s portfolio included a higher proportion of projects with better margins.