Q2 2024 EMCOR Group Inc Earnings Call Transcript
Key Points
- EMCOR Group Inc (EME) set new quarterly records for revenues, operating income, operating margin, and diluted earnings per share.
- Revenues grew by 20.4% to $3.67 billion, with organic revenue growth of 17.7%.
- Mechanical and electrical construction segments showed strong performance with organic revenue growth of over 33% and 18%, respectively.
- RPOs (Remaining Performance Obligations) remained near record levels at $9 billion, increasing by 8.6% year-over-year.
- Strong operating cash flow of $412 million year-to-date, almost double from the previous year.
- The commercial site-based business faced nearly $300 million in revenue headwinds due to the loss of certain facilities maintenance contracts.
- RPOs declined by 2% from the first quarter of 2024, partially due to the timing and amount of subsequent project phases.
- The commercial market sector experienced reduced demand, impacting revenue growth in both electrical and mechanical construction segments.
- The UK business, while performing as expected, showed only modest growth with operating margins of 5.4% in the quarter.
- Higher interest rates, supply chain disruptions, and global conflicts pose ongoing challenges for the company.
Good morning. My name is Danielle, and I will be your conference operator today. At this time, I would like to welcome everyone to the EMCOR Group second quarter 2024 earnings conference call. (Operator Instructions) Please note, this call is being recorded.
I would now like to turn the call over to Andy Backman, Vice President of Investor Relations. Mr. Backman, you may begin.
Thank you, Danielle, and good morning, everyone, and welcome to EMCOR's second quarter 2024 earnings conference call. For those of you joining us by webcast, we are at the beginning of our slide presentation that will accompany our remarks today. This presentation will be archived in the Investor Relations section of our website at emcorgroup.com.
With me today are Tony Guzzi, our Chairman, President and Chief Executive Officer; Jason Nalbandian, Senior Vice President and EMCOR's Chief Financial Officer; Maxine Mauricio, Executive Vice President, Chief Administrative Officer and General Counsel.
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