EMCOR Group Inc (EME, Financial) released its Q3 2023 earnings report on October 26, 2023, revealing record-breaking performance. The company reported net income of $169.4 million, or $3.57 per diluted share, compared to net income of $105.8 million, or $2.16 per diluted share, for the third quarter of 2022. The net income for Q3 2023 included a long-lived asset impairment charge of $2.4 million, or $1.7 million after taxes. Excluding this impairment charge, non-GAAP net income for the third quarter of 2023 was $171.1 million, or $3.61 per diluted share.
Financial Highlights
Revenues for the third quarter of 2023 totaled $3.21 billion, up 13.5% from the third quarter of 2022. Operating income for the third quarter of 2023 was $235.0 million, or 7.3% of revenues, compared to operating income of $150.1 million, or 5.3% of revenues, for the third quarter of 2022. Excluding the previously referenced impairment charge, non-GAAP operating income for the third quarter of 2023 was $237.3 million, or 7.4% of revenues.
EMCOR's remaining performance obligations as of September 30, 2023, were $8.64 billion compared to $7.10 billion as of September 30, 2022, marking a growth of approximately $1.53 billion year-over-year.
Company Commentary
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented,
The Company had another excellent quarter, resulting in multiple records across our business as we continue to build on strong momentum. Year-over-year revenues increased 13.5%, or 12.8% on an organic basis, driven by double-digit revenue growth in our combined U.S. Construction segments, as well as our U.S. Building Services segment. Despite ongoing geopolitical tensions and tightened financing conditions creating a challenging macroeconomic environment, strong end-market demand, coupled with excellent execution, have helped drive our success this quarter."
Looking Forward
Based on year-to-date performance, EMCOR is raising its full year 2023 guidance for revenues and diluted earnings per share. The Company now expects full year 2023 revenues to be approximately $12.5 billion, the top end of its prior guidance range of $12.0 billion to $12.5 billion, and currently expects full-year 2023 non-GAAP diluted earnings per share in the range of $12.25 to $12.65, an increase from its prior guidance range of $10.75 to $11.25.
Explore the complete 8-K earnings release (here) from EMCOR Group Inc for further details.
