Emcor Group, Inc. · NYSE:EME
Emcor — Evercore ISI Industrial Conference 2024
19 slides from Emcor's conference presentation, Mar 5, 2024
Slide 1: Evercore ISI Industrial Conference - March 5, 2024
EVERCORE ISI INDUSTRIAL CONFERENCE - March 5, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Disclosures
EMCOR GROUP, INC. MARCH 5, 2024 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 obligati
Slide 3: EMCOR Highlights
EMCOR GROUP, INC. MARCH 5, 2024 EMCOR HIGHLIGHTS » NYSE: EME » Leading specialty construction, building, and industrial services provider » Over 80 million hours worked in 2023 » 2023 Total Recordable Incident Rate (TRIR) of just under 1.2 » 2023 Qtr. 4 RPOs of $8.85B 3
Slide 4: EMCOR Strengths
EMCOR GROUP, INC. MARCH 5, 2024 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. MARCH 5, 2024 BROAD CONSTRUCTION & SERVICES PLATFORM 2023 REVENUES: $12.6B CONSTRUCTION * SERVICES INDUSTRIAL CONSTRUCTION SERVICES BUILDING SERVICES SERVICES Mechanical Electrical Mechanical Site-Based Government EMCOR UK Refinery / Petrochemical / Construction Construction Servic
Slide 6: Driving Profitable Organic Growth
EMCOR GROUP, INC. MARCH 5, 2024 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 » Pharmaceutic
Slide 7: RPOs by Market Sector – 12/31/23
EMCOR GROUP, INC. MARCH 5, 2024 RPOS BY MARKET SECTOR – 12/31/23 » Diverse Remaining Performance Obligations (RPOs) of $8.85 billion 3% ($ Millions) (Unaudited) 2% 5% 12/31/23 17% Commercial $1,479 7% Network & Communications 1,558 High-Tech Manufacturing 1,457 Healthcare 1,048 9% Institutional 942
Slide 8: Prioritizing Sustainability
EMCOR GROUP, INC. MARCH 5, 2024 PRIORITIZING SUSTAINABILITY Our Mission First, People Always Values Continue to Guide our Sustainability Strategy Recent Updates » Aligned our sustainability reporting with the Sustainability Accounting Standards Board (SASB) standard for the Engineering & Constructio
Slide 9: Key Financial Data – Income Statement
EMCOR GROUP, INC. MARCH 5, 2024 KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) For the Year Ended December 31, Variance 2023 2022 $ % Revenues $ 12,582,873 $ 11,076,120 $ 1,506,753 13.6% Gross Profit 2,089,339 1,603,594 485,745 30.3% 16.6% 14.5% Selling, General an
Slide 10: Key Financial Data – Balance Sheet
EMCOR GROUP, INC. MARCH 5, 2024 KEY FINANCIAL DATA – BALANCE SHEET ($ Thousands) 12/31/23 12/31/22 Cash $ 789,750 $ 456,439 Working Capital $ 928,616 $ 708,451 Goodwill $ 956,549 $ 919,151 Identifiable Intangible Assets, Net $ 586,032 $ 593,975 Total Debt (excludes operating leases) $ 5,303 $ 247,19
Slide 11: Balanced Capital Allocator
EMCOR GROUP, INC. MARCH 5, 2024 BALANCED CAPITAL ALLOCATOR EMCOR Capital Allocation by Year (%) 100% 4.9% 90% 24.4% 13.2% 80% 36.7% 38.1% ~55% 49.3% 51.7% 47.8% 5.0% 70% 61.7% 10.3% 60% 7.5% 79.0% 9.7% 50% 13.6% 5.8% 7.7% 7.4% 40% 81.9% 23.4% 12.1% 5.3% 9.6% 21.0% 30% 60.3% 12.4% ~45% 20% 42.2% 3.3%
Slide 12: 2024 Outlook
EMCOR GROUP, INC. MARCH 5, 2024 2024 OUTLOOK » RPOs of $8.85 billion as of December 31, 2023; Provides solid line of sight into 2024 » Continued strength in secular end markets including High-Tech Manufacturing (semiconductors, the EV value chain, biotech, life sciences and pharmaceutical); Network
Slide 13: 2024 Guidance
EMCOR GROUP, INC. MARCH 5, 2024 2024 GUIDANCE Revenues $13.5 - $14.0 Billion Diluted EPS* $14.00 - $15.00 * Assumes 27% to 28% effective tax rate 13
Slide 14: Market Outlook – Network & Communications
EMCOR GROUP, INC. MARCH 5, 2024 MARKET OUTLOOK – NETWORK & COMMUNICATIONS DATA CENTERS Demand across Mid-Atlantic, Pacific Northwest, Midwest, and the Southeast remains strong » Electrical Construction » Mechanical Construction Buildout accelerated by recent developments in AI CUSTOMER BASE “Average
Slide 15: Market Outlook – High-Tech Manufacturing
EMCOR GROUP, INC. MARCH 5, 2024 MARKET OUTLOOK – HIGH-TECH MANUFACTURING Critical Supply Chain Disruption is Driving Demand: » Regionalization Shift in Supply Chain / Re-shoring of Critical Supply » Semiconductor » Pharmaceuticals » Life Sciences » Medical Devices » Computer & Electronics 15
Slide 16: Market Outlook – High-Tech Manufacturing
EMCOR GROUP, INC. MARCH 5, 2024 MARKET OUTLOOK – HIGH-TECH MANUFACTURING Semiconductors Increasing demand from our semiconductor customers » Traditional mechanical construction services » Fire life safety systems » High purity piping » Additional opportunities bolstered by the CHIPS and Science Act
Slide 17: Market Outlook – Energy Transition / Expansion
EMCOR GROUP, INC. MARCH 5, 2024 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 » R
Slide 18: Market Outlook – Mechanical Services
EMCOR GROUP, INC. MARCH 5, 2024 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 Organizations
Slide 19: EMCOR
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EMCOR Group — Evercore ISI Industrial Conference 2024 on 6ix