Slide 1: UBS Industrials Summit
UBS Industrials Summit November 30, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Disclosures
EMCOR GROUP, INC. NOVEMBER 30, 2023 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES Forward-Looking Statements This material and related presentation contain forward-looking statements. Such statements speak only as of the date on the cover of this slide deck, and EMCOR assumes no obli
Slide 3: EMCOR Highlights
EMCOR GROUP, INC. NOVEMBER 30, 2023 EMCOR HIGHLIGHTS » Leading specialty construction, building, and industrial services provider » Approximately 78 million hours worked in 2022 » 2022 Total Recordable Incident Rate (TRIR) of 1.2 » 2023 Qtr. 3 RPOs of $8.64B 3
Slide 4: EMCOR Strengths
EMCOR GROUP, INC. NOVEMBER 30, 2023 EMCOR STRENGTHS » Significant expertise in project execution and managing skilled craft labor » Disciplined and effective cost management » Broad opportunities for earnings growth » History of consistent cash generation » Strong and liquid balance sheet 4
Slide 5: Broad Construction & Services Platform
EMCOR GROUP, INC. NOVEMBER 30, 2023 BROAD CONSTRUCTION & SERVICES PLATFORM 2022 REVENUES: $11.1B CONSTRUCTION * SERVICES INDUSTRIAL CONSTRUCTION SERVICES BUILDING SERVICES SERVICES Mechanical Electrical Mechanical Site-Based Government EMCOR UK Refinery / Petro Chemical / Construction Construction S
Slide 6: Driving Profitable Organic Growth
EMCOR GROUP, INC. NOVEMBER 30, 2023 DRIVING PROFITABLE ORGANIC GROWTH Electrification / EV High-Tech Manufacturing / Data Centers /Connectivity Value Chain Life Sciences » Energy Transition / Expansion » Semiconductor Manufacturing » Continued Demand Drivers » Electric Vehicle and Battery » Pharmace
Slide 7: RPOs by Market Sector – 9/30/23
EMCOR GROUP, INC. NOVEMBER 30, 2023 RPOS BY MARKET SECTOR – 9/30/23 » Diverse Remaining Performance Obligations (RPOs) of $8.64 billion 2% ($ Millions) (Unaudited) 2% 5% 9/30/23 7% 19% Commercial $1,605 Network & Communications 1,383 High-Tech Manufacturing 1,351 10% Healthcare 1,025 Institutional 9
Slide 8: Prioritizing Sustainability
EMCOR GROUP, INC. NOVEMBER 30, 2023 PRIORITIZING SUSTAINABILITY Our Mission First, People Always Values Continue to Guide our Sustainability Strategy Recent Updates » Aligned our sustainability reporting with the Sustainability Accounting Standards Board (SASB) standard for the Engineering & Constru
Slide 9: Key Financial Data – Income Statement
EMCOR GROUP, INC. NOVEMBER 30, 2023 KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) (Unaudited) For the Nine Months Ended September 30, Variance 2023 2022 $ % Revenues $ 9,143,652 $ 8,126,298 $ 1,017,354 12.5% Gross Profit 1,471,594 1,148,794 322,800 28.1% 16.1% 14.
Slide 10: Key Financial Data – Balance Sheet
EMCOR GROUP, INC. NOVEMBER 30, 2023 KEY FINANCIAL DATA – BALANCE SHEET ($ Thousands) (Unaudited) 09/30/23 12/31/22 Cash $ 523,632 $ 456,439 Working Capital $ 836,093 $ 708,451 Goodwill $ 953,359 $ 919,151 Identifiable Intangible Assets, Net $ 600,790 $ 593,975 Total Debt (excludes operating leases)
Slide 11: Balanced Capital Allocator
EMCOR GROUP, INC. NOVEMBER 30, 2023 BALANCED CAPITAL ALLOCATOR EMCOR Capital Allocation by Year (%) 100% 4.9% 90% 24.4% 13.2% 80% 36.7% ~55% 49.3% 51.7% 49.0% 5.0% 70% 61.7% 10.3% 60% 7.5% 79.0% 50% 13.6% 5.3% 7.7% 7.4% 40% 81.9% 10.7% 5.3% 9.6% 21.0% 30% 60.3% ~45% 12.4% 20% 42.2% 3.3% 31.3% 35.0%
Slide 12: 2023 – Outlook for Remainder of Year
EMCOR GROUP, INC. NOVEMBER 30, 2023 2023 – OUTLOOK FOR REMAINDER OF YEAR » Our target markets continue to show resiliency Continued demand and growth in network & communications (data centers) and high-tech manufacturing projects (semiconductor and EVs / EV value chain / batteries) Strength in o
Slide 13: 2023 Guidance - Revised
EMCOR GROUP, INC. NOVEMBER 30, 2023 2023 GUIDANCE - REVISED Revenues ~$12.5 Billion Non-GAAP Diluted EPS* $12.25 - $12.65 Was $10.75 - $11.25 * Assumes 27.5% to 28.0% effective tax rate and excludes impact of impairment loss on long-lived assets 13
Slide 14: Market Outlook – Data Centers
EMCOR GROUP, INC. NOVEMBER 30, 2023 MARKET OUTLOOK – DATA CENTERS Demand across Mid-Atlantic, Pacific Northwest, Midwest, and the Southeast remains strong » Electrical Construction » Mechanical Construction » Fire Life Safety Systems Buildout accelerated by recent developments in AI CUSTOMER BASE “A
Slide 15: Market Outlook – Industrial / Manufacturing
EMCOR GROUP, INC. NOVEMBER 30, 2023 MARKET OUTLOOK – INDUSTRIAL / MANUFACTURING Critical Supply Chain Disruption is Driving Demand: » Regionalization Shift in Supply Chain / Re-shoring of Critical Supply » Semiconductor » Pharmaceuticals » Medical Devices » Computer & Electronics 15
Slide 16: Market Outlook – Energy Transition / Expansion
EMCOR GROUP, INC. NOVEMBER 30, 2023 MARKET OUTLOOK – ENERGY TRANSITION / EXPANSION EMCOR remains well positioned to assist its customers with the energy transition / expansion » EV and EV battery manufacturing facilities » Electrical charging stations on industrial scale » Large scale solar projects
Slide 17: Market Outlook – Mechanical Services
EMCOR GROUP, INC. NOVEMBER 30, 2023 MARKET OUTLOOK – MECHANICAL SERVICES Growing demand stemming from maintenance deferrals, retrofit opportunities, efficiency upgrades, and IAQ » Mechanical Services » Alternative Energy Solutions CUSTOMER BASE » Commercial Buildings » National Brands and Organizati
Slide 18: Market Outlook – Semiconductor
EMCOR GROUP, INC. NOVEMBER 30, 2023 MARKET OUTLOOK – SEMICONDUCTOR Increasing demand from our semiconductor customers » Traditional mechanical construction services » Fire life safety systems » High purity piping » Additional project opportunities bolstered by the CHIPS and Science Act of 2022 18
Slide 19: EMCOR
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