Emcor Group, Inc. · NYSE:EME
Emcor — D.A. Davidson 21st Annual Diversified Industrials & Services Conference 2022
19 slides from Emcor's conference presentation, Sep 22, 2022
Slide 1: D.A. Davidson 21st Annual Diversified Industrials & Services Conference
D.A. DAVIDSON 21st ANNUAL DIVERSIFIED INDUSTRIALS & SERVICES CONFERENCE SEPTEMBER 22, 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Disclosures
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES Forward-Looking Statements This material and related presentation contain certain forward-looking statements. Such statements speak only as of the date on the cover of this slide deck, and EMCOR
Slide 3: EMCOR Highlights
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 EMCOR HIGHLIGHTS » Leading specialty construction, building, and industrial services provider » Approximately 76 million hours worked in 2021 » 2021 Total Recordable Incident Rate (TRIR) of 1.06 » 2022 Qtr. 2 RPOs of $6.46B 3
Slide 4: EMCOR Strengths
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 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
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 BROAD CONSTRUCTION & SERVICES PLATFORM 2021 REVENUES: $9.9B CONSTRUCTION * SERVICES INDUSTRIAL CONSTRUCTION SERVICES BUILDING SERVICES SERVICES Mechanical Electrical Mobile Site-Based Government EMCOR UK Refinery / Petro Chemical / Turnaround Services Reve
Slide 6: Growth Opportunities
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 GROWTH OPPORTUNITIES Well-positioned in growing non-residential markets / trades Data Centers / » Strong Electrical / Mechanical / Fire Protection demand across numerous geographic regions; RPOs continue to grow Semiconductor Fabs » Growing Electrical / Me
Slide 7: Market Outlook – Data Centers
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 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 “Ave
Slide 8: Market Outlook – Industrial / Manufacturing
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 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
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 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 Compan
Slide 10: Market Outlook – Mechanical Services
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 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 C
Slide 11: RPOs by Market Sector – 6/30/22
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 RPOS BY MARKET SECTOR – 6/30/22 Diverse Remaining Performance Obligations (RPOs) of $6.46 billion 7% ($ Millions) (Unaudited) 6/30/22 8% 3% Commercial 3,130 Hospitality / Gaming 122 Industrial / Manufacturing 639 48% 11% Healthcare 697 Institutional 718
Slide 12: Prioritizing Sustainability
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 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 &
Slide 13: Key Financial Data – Income Statement
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) For the Six Months Ended J une 30, Variance 2022 2021 $ % Revenues $ 5,299,937 $ 4,741,715 $ 558,222 11.8% Gross Profit 735,563 717,352 18,211 2.5% 13.9% 15.1% Selling, Gener
Slide 14: Key Financial Data – Balance Sheet
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 KEY FINANCIAL DATA – BALANCE SHEET ($ Thousands) (Unaudited) 06/ 30/ 22 12/ 31/ 21 Cash $ 262,370 $ 821,345 Working Capital $ 722,605 $ 1,029,263 Goodwill $ 901,208 $ 890,268 I dentifiable I ntangible Assets, Net $ 577,284 $ 589,365 Total Debt (excludes op
Slide 15: Balanced Capital Allocator
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 BALANCED CAPITAL ALLOCATOR EMCOR Capital Allocation by Year (%) 100% 4.9% 90% 24.4% 13.2% 80% 36.7% 49.3% ~50% 46.9% 5.0% 51.7% 70% 61.7% 10.3% 60% 7.5% 87.0% 50% 13.6% 5.4% 7.7% 7.4% 40% 81.9% 11.2% 5.3% 9.6% 21.0% 30% 60.3% 12.4% ~50% 20% 42.2% 36.5% 31.
Slide 16: 2022 Outlook for Remainder of Year
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 2022 OUTLOOK FOR REMAINDER OF YEAR » First and continuing priority – focus on employee health and safety » Non-residential market is projected to continue to grow in 2022 » Strong HVAC repair service work driven by lack of new equipment availability and su
Slide 17: Guidance Assumption Update
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 GUIDANCE ASSUMPTION UPDATE Lingering COVID, inflation, and supply chain disruptions continue to contribute to a challenging 2022 operating environment Original 2022 Assumptions Qtr. 2 2022 Update Non-res. market projected to grow Up mid-single digits
Slide 18: 2022 Guidance
D.A. DAVIDSON CONFERENCE SEPTEMBER 22, 2022 2022 GUIDANCE » Assuming the impact of the COVID-19 pandemic and supply chain disruptions do not worsen Revenues ~$10.8 Billion Diluted EPS* $7.30 - $7.80 * Assumes 27.0% - 28.0% effective tax rate 18
Slide 19: EMCOR Build Power Service Protect
= EMCOR BUILD POWER SERVICE PROTECT
EMCOR Group — D.A. Davidson 21st Annual Diversified Industrials & Services Conference 2022 on 6ix