Shares of EMCOR Group Inc (NYSE: EME) jumped 5.57% in pre-market trading on Wednesday after the specialty construction contractor reported better-than-expected Q4 earnings and provided an optimistic outlook for fiscal 2025.
The key highlights of EMCOR's Q4 results include:
- Revenue rose 9.6% year-over-year to $3.77 billion, narrowly missing estimates of $3.79 billion. The top-line growth was driven by strong demand across key markets like data centers, high-tech manufacturing, and energy.
- Earnings per share of $6.32 topped analysts' expectations of $5.79 by 9.1%, reflecting higher operating margins and the benefits of share repurchases.
- Operating margin expanded by 190 basis points to 10.3% due to operating leverage and an improved cost structure.
Looking ahead, EMCOR provided robust fiscal 2025 guidance, with revenue expected in the range of $16.1 billion to $16.9 billion, above consensus estimates of $15.7 billion. The company also projects earnings per share of $22.25 to $24.00, versus analysts' average forecast of $22.88.
Chairman, President, and CEO Tony Guzzi expressed confidence in EMCOR's ability to capitalize on strong demand trends, particularly in key markets like network and communications, high-tech manufacturing, and energy. The company's record remaining performance obligations of $10.1 billion also provide solid visibility for the upcoming year.