EMCOR Group, Inc. EME reported mixed fourth-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same. Nonetheless, both the top and bottom lines have increased year over year. Following the results, shares of EMCOR gained 5.4% during the trading session yesterday.

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EMCOR delivered record-breaking results for the fourth quarter and full year of 2024, with strong revenue growth, operating income and earnings per share. Chairman, president and CEO Tony Guzzi highlighted a 14.2% year-over-year increase in remaining performance obligations, reflecting sustained demand.

More on EME’s Q4 Results

EME reported adjusted earnings per share (EPS) of $6.32, surpassing the Zacks Consensus Estimate of $5.54 by 14.1%. The metric also increased 41.4% from the year-ago quarter’s figure.
 
Revenues of $3.77 billion missed the consensus mark of $3.84 billion by 2.6% but increased 9.6% year over year.

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 16% year over year to $2.59 billion. The company witnessed strong demand across many of the markets served. The segment’s operating income appreciated 45%. The margin expanded 250 basis points (bps) year over year to 14.2%.

Within the U.S. Construction umbrella, the U.S. Electrical Construction and Facilities Services segment’s revenues increased 22.2% year over year to $933.2 million, benefiting from strong demand in data centers, high-tech manufacturing and energy sectors. Operating income surged 93.9% and margin expanded 580 bps year over year to 15.8%. The U.S. Mechanical Construction and Facilities Services segment’s revenues rose 12.8% year over year to $1.66 billion, driven by operational efficiencies and investments in technology. The segment’s operating income rose 18.6%, and its margin expanded 70 bps year over year to 13.3%.

The U.S. Building Services: Revenues in the segment declined 2.8% from the prior-year quarter’s levels to $755.6 million. Operating income declined 2.8% year over year and the margin was up 20 bps to 5.4%.

U.S. Industrial Services: This segment’s revenues increased 6.9% year over year to $312.7 million. Operating income of the segment declined 19.2%. Operating margin was 3.3% in the quarter, down from 4.3% a year ago.

U.K. Building Services: This segment’s revenues declined 0.8% from the year-ago quarter to $107.9 million. Also, the segment’s operating income decreased 11.5%, and the margin fell 50 bps to 4.5% year over year.

EMCOR’s Q4 Operating Highlights

Gross margin expanded 210 bps year over year to 20.1% in the quarter. Selling, general and administrative expenses increased 12.1% year over year to $368.5 million.

Operating margin in the quarter was 10.3%, up 190 bps from 8.4% year over year.

EME’s 2024 Highlights

Total revenues were up 15.8% to $14.57 billion. EPS came in at $21.52, up 61.7% from a year ago. Gross margin was up 240 bps to 19%.

EME’s Liquidity & Cash Flow

As of Dec. 31, 2024, EMCOR had cash and cash equivalents of $1.34 billion compared with $789.8 million at 2023-end.

Net cash provided by operating activities was $1.41 billion in 2024 compared with $899.7 million in the prior year.

The remaining performance obligations, as of Dec. 31, 2024, increased $1.25 billion year over year to $10.1 billion.

EME’s 2025 Outlook

The company expects annual revenues of $16.1 billion-$16.9 billion. EPS is expected to be within $22.25-$24.00. Operating margins are expected to be between 8.5% and 9.2%.

EMCOR’s Zacks Rank & Peer Releases

EMCOR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quanta Services Inc. PWR reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same. Yet both the top and bottom lines grew year over year.

PWR is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenues, adjusted EBITDA and EPS growth, along with a record backlog.

Gibraltar Industries, Inc.’s ROCK fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.

ROCK’s quarterly bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects given the robust public spending trends at the federal and state levels.

AECOM ACM reported impressive results for first-quarter fiscal 2025, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenue growth in its design business.

As of the fiscal quarter’s end, AECOM’s total backlog was $23.88 billion compared with $23.32 billion reported in the prior-year period. The current backlog level includes 55.2% contracted backlog growth.

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