• Revenue: $3.87 billion, a year-over-year growth of 12.7%.
• Operating Income: $318.8 million, with an operating margin of 8.2%.
• Diluted Earnings Per Share (EPS): $5.26, an increase of 26% from the previous year.
• Non-GAAP Adjusted Operating Income: $328.1 million, or 8.5% of revenues.
• Non-GAAP Adjusted Diluted EPS: $5.41.
• Electrical Construction Revenue: $1.09 billion, a 42.3% increase.
• Mechanical Construction Revenue: $1.57 billion, a 10.2% increase.
• US Building Services Revenue: $742.6 million, a decrease of 4.9%.
• Industrial Services Revenue: $359 million, an increase of 1.4%.
• UK Building Services Revenue: $105.3 million, stable compared to the previous year.
• Remaining Performance Obligations (RPOs): $11.8 billion, a 17.1% organic growth year-over-year.
• Organic Book-to-Bill Ratio: 1.18 for the quarter.
• Operating Cash Flow: $108.5 million.
• Cash Balance: Just under $577 million at the end of March.

• Warning! GuruFocus has detected 2 Warning Sign with GRMN.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EMCOR Group Inc (NYSE:EME) reported a strong first quarter with revenues of $3.87 billion, reflecting a year-over-year growth of 12.7%.
• The company achieved an operating income of $318.8 million, with an operating margin of 8.2%, and a 26% increase in diluted earnings per share to $5.26.
• The Electrical and Mechanical Construction segments drove performance with revenue increases of 42.3% and 10.2%, respectively.
• EMCOR Group Inc (NYSE:EME) successfully integrated Miller Electric, contributing $183 million in revenues and adding approximately $400 million of RPOs in the network and communications market.
• The company raised the low end of its diluted earnings per share guidance by $0.40, reflecting confidence in continued strong operating margins for 2025.

Negative Points

• The Industrial Services segment was impacted by a slower start to the turnaround season due to frigid January weather in Texas, affecting operating income and margin.
• There was an increase in the allowance for credit losses, impacting the Industrial Services segment's operating income by $4 million.
• The US Building Services segment faced headwinds with a 4.9% decrease in revenues due to reduced site-based revenues.
• High-tech manufacturing RPOs decreased, although the company remains optimistic about future awards in this sector.
• The acquisition of Miller Electric was dilutive to the Electrical segment margin, primarily due to intangible asset amortization.

Q & A Highlights

Q: Tony, with a strong start on RPOs, why did you keep the top end of the guidance range? Is it due to operational risks like tariffs or potential growth headwinds? A: Anthony Guzzi, CEO: It's more about macroeconomic uncertainty beyond tariffs. We feel good about our range, but even without tariffs, we wouldn't have raised the top end. The guidance reflects our expectation of continued growth and strong operating margins.

Q: Regarding high-tech manufacturing, there's been a lot of reshoring announcements. What are your thoughts on opportunities in this vertical? A: Anthony Guzzi, CEO: We expect growth in pharma and semiconductor work due to reshoring. The macroeconomic environment supports this, and we are well-positioned in key areas like the Research Triangle Park and New Jersey.

Q: Is the Miller acquisition accretive or dilutive to the Electrical segment margin? A: Jason Nalbandian, CFO: For the quarter, it's dilutive due to intangible asset amortization, impacting the segment by about 100 to 110 basis points. Without amortization, Miller is margin neutral with our Electrical segment.

Q: Can you provide an update on the Building Services segment and your investment focus? A: Anthony Guzzi, CEO: We are focusing on Mechanical Services, which will likely shift from a 70-30 to an 80-20 split with site-based services. We aim to grow technician-based services and avoid contracts with difficult terms.

Q: What are your thoughts on the data center market given recent headlines about hyperscalers adjusting commitments? A: Anthony Guzzi, CEO: We see more demand for power and build-outs, with increasing size and scope of projects. Our visibility is strong through the end of the year, and we are part of many customer build plans.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.