EMCOR Group, Inc. · NYSE:EME
EMCOR — Investor Presentation (November 2021)
19 slides from EMCOR's investor presentation, Nov 11, 2021
Slide 1: EMCOR Group, Inc.
EMCOR GROUP, INC. NOVEMBER 11, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Disclosures
EMCOR GROUP, INC. NOVEMBER 11, 2021 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES Forward-Looking Statements This material and related presentation contain certain forward-looking statements. Any such comments speak only as of the date on the cover of this slide deck and EMCOR assume
Slide 3: EMCOR Highlights
EMCOR GROUP, INC. NOVEMBER 11, 2021 EMCOR HIGHLIGHTS » Leading specialty construction, building, and industrial services provider » Nearly 73 million hours worked in 2020 » 2020 Total Recordable Incident Rate (TRIR) of 1.20 » Q3 2021 RPOs of $5.4B 3
Slide 4: EMCOR Strengths
EMCOR GROUP, INC. NOVEMBER 11, 2021 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 11, 2021 BROAD CONSTRUCTION & SERVICES PLATFORM 2020 REVENUES: $8.8B CONSTRUCTION * SERVICES INDUSTRIAL CONSTRUCTION SERVICES BUILDING SERVICES SERVICES Mechanical Electrical Mobile Site-Based Government EMCOR UK Refinery / Petro Chemical / Turnaround Services Revenues Rev
Slide 6: Growth Opportunities
EMCOR GROUP, INC. NOVEMBER 11, 2021 GROWTH OPPORTUNITIES Well-positioned in growing non-residential markets / trades Data Centers » Strong Electrical / Mechanical / Fire Protection demand across Mid-Atlantic, Pacific Northwest, Midwest and Southeast Warehouses » Continued buildout of e-commerce supp
Slide 7: Market Outlook – Data Centers
EMCOR GROUP, INC. NOVEMBER 11, 2021 MARKET OUTLOOK – DATA CENTERS Demand across Mid-Atlantic, Pacific Northwest, Midwest, and the Southeast remains strong » Electrical Construction » Mechanical Construction » Fire Protection Systems CUSTOMER BASE » Technology Companies » Financial Firms “Average” Da
Slide 8: Market Outlook – Industrial / Manufacturing
EMCOR GROUP, INC. NOVEMBER 11, 2021 MARKET OUTLOOK – INDUSTRIAL / MANUFACTURING Well-positioned for continued and increased investment in: » Re-shoring of Critical Supply » Food Processing » High-Tech / Semiconductor » Pharmaceuticals » Building Products » Energy – Traditional / Renewable 8
Slide 9: Market Outlook – Supply Chain Support / Build Out
EMCOR GROUP, INC. NOVEMBER 11, 2021 MARKET OUTLOOK – SUPPLY CHAIN SUPPORT / BUILD OUT E-Commerce supply chain driving strong fire protection demand / moderate electrical services demand » Fire Protection Systems » Mechanical Construction » Active Aftermarket CUSTOMER BASE » Technology Companies » Fo
Slide 10: Market Outlook – Mechanical Services
EMCOR GROUP, INC. NOVEMBER 11, 2021 MARKET OUTLOOK – MECHANICAL SERVICES Growing demand stemming from maintenance deferrals, retrofit opportunities, efficiency upgrades, and IAQ » Mobile Mechanical Services » Building Automation & Controls » Onsite Facilities Services » Government Services CUSTOMER
Slide 11: Current Emphasis on HVAC Indoor Air Quality (IAQ) Solutions
EMCOR GROUP, INC. NOVEMBER 11, 2021 CURRENT EMPHASIS ON HVAC INDOOR AIR QUALITY (IAQ) SOLUTIONS 1 EMCOR MECHANICAL HVAC CAPABILITIES 2 INDOOR AIR QUALITY » Nationwide scope and expertise in all » A building’s indoor air quality HVAC Systems significantly impacts the productivity, health, and comfort
Slide 12: RPOs by Market Sector – 9/30/21
EMCOR GROUP, INC. NOVEMBER 11, 2021 RPOS BY MARKET SECTOR – 9/30/21 Diverse Remaining Performance Obligations (RPOs) of $5.4 billion 6% ($ Millions) (Unaudited) 2021 – Qtr. 3 11% Commercial $2,249 5% Hospitality / Gaming 68 Industrial / Manufacturing 693 42% Healthcare 609 11% Institutional 584 Tr
Slide 13: Prioritizing Sustainability
EMCOR GROUP, INC. NOVEMBER 11, 2021 PRIORITIZING SUSTAINABILITY Our Mission First, People Always values continue to guide our sustainability strategy Recent Updates » Aligned our sustainability reporting with the Sustainability Accounting Standards Board (SASB) standard for the Engineering & Constru
Slide 14: Key Financial Data – Income Statement
EMCOR GROUP, INC. NOVEMBER 11, 2021 KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) (Unaudited) For the Nine Months Ended September 30, Variance 2021 2020 $ % Revenues $7,263,387 $6,515,567 $ 747,820 11.5% Gross Profit 1,098,695 1,011,531 87,164 8.6% 15.1% 15.5% Sel
Slide 15: Key Financial Data – Balance Sheet
EMCOR GROUP, INC. NOVEMBER 11, 2021 KEY FINANCIAL DATA – BALANCE SHEET ($ Thousands) (Unaudited) 09/30/21 12/31/20 Cash $ 663,905 $ 902,867 Working Capital $ 976,444 $ 957,704 Goodwill $ 888,303 $ 851,783 Identifiable Intangible Assets, Net $ 602,234 $ 582,893 Total Debt (excludes operating leases)
Slide 16: Balanced Capital Allocator
EMCOR GROUP, INC. NOVEMBER 11, 2021 BALANCED CAPITAL ALLOCATOR EMCOR Capital Allocation by Year (%) 100% 4.9% 90% 24.4% 13.2% 36.7% ~40% 35.0% 80% 5.0% 49.3% 70% 55.4% 61.7% 10.3% 60% 7.5% 6.3% 50% 14.1% 13.6% 7.7% 40% 10.7% 81.9% 5.3% 21.0% 30% 60.3% ~60% 12.4% 18.9% 44.6% 20% 42.2% 10% 20.6% 22.0%
Slide 17: Guidance Assumptions Update
EMCOR GROUP, INC. NOVEMBER 11, 2021 GUIDANCE ASSUMPTIONS UPDATE Multiple assumptions are trending better than expected - supporting guidance raise Original 2021 Assumptions Year End Update Non-res. market flat to modestly down Up mid-single digits Better than expected organic revenue Healthy
Slide 18: 2021 Updated Guidance
EMCOR GROUP, INC. NOVEMBER 11, 2021 2021 UPDATED GUIDANCE » Assuming the impact of the COVID-19 pandemic does not worsen, no further major disruptions (e.g. government orders or mandates) Revenues $9.80 - $9.85 Billion Diluted EPS* $6.95 - $7.15 * Assumes 27.0% - 27.5% effective tax rate 18
Slide 19: Build Power Service Protect
BUILD POWER SERVICE PROTECT