Emcor Group, Inc. · NYSE:EME
Emcor — D.A. Davidson 22nd Annual Diversified Industrials & Services Conference 2023
19 slides from Emcor's conference presentation, Sep 21, 2023
Slide 1: D.A. Davidson 22nd Annual Diversified Industrials & Services Conference
D.A. DAVIDSON 22nd ANNUAL DIVERSIFIED INDUSTRIALS & SERVICES CONFERENCE SEPTEMBER 21, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Disclosures
EMCOR GROUP, INC. SEPTEMBER 21, 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 obl
Slide 3: EMCOR Highlights
EMCOR GROUP, INC. SEPTEMBER 21, 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. 2 RPOs of $8.29B
Slide 4: EMCOR Strengths
EMCOR GROUP, INC. SEPTEMBER 21, 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
Slide 5: Broad Construction & Services Platform
EMCOR GROUP, INC. SEPTEMBER 21, 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
Slide 6: Driving Profitable Organic Growth
EMCOR GROUP, INC. SEPTEMBER 21, 2023 DRIVING PROFITABLE ORGANIC GROWTH Electrification / EV High-Tech Manufacturing / Data Centers /Connectivity Value Chain Life Sciences » Electric Vehicle and Battery » Semiconductor Manufacturing » Continued Demand Drivers Plant Construction » Pharmaceutical / Bio
Slide 7: RPOs by Market Sector – 6/30/23
EMCOR GROUP, INC. SEPTEMBER 21, 2023 RPOS BY MARKET SECTOR – 6/30/23 » Diverse Remaining Performance Obligations (RPOs) of $8.29 billion 2% ($ Millions) (Unaudited) 3% 5% 6/30/23 21% Commercial $1,719 6% Network & Communications 1,231 High-Tech Manufacturing 1,224 10% Healthcare 1,043 Manufacturing
Slide 8: Prioritizing Sustainability
EMCOR GROUP, INC. SEPTEMBER 21, 2023 PRIORITIZING SUSTAINABILITY Our Mission First, People Always Values Continue to Guide our Sustainability Strategy Recent Updates » Aligned our sustainability reporting with the Sustainability Accounting Standards Board (SASB) standard for the Engineering & Constr
Slide 9: Key Financial Data – Income Statement
EMCOR GROUP, INC. SEPTEMBER 21, 2023 KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) (Unaudited) For the Six Months Ended June 30, Variance 2023 2022 $ % Revenues $ 5,936,054 $ 5,299,937 $ 636,117 12.0% Gross Profit 926,122 735,563 190,559 25.9% 15.6% 13.9% Selling,
Slide 10: Key Financial Data – Balance Sheet
EMCOR GROUP, INC. SEPTEMBER 21, 2023 KEY FINANCIAL DATA – BALANCE SHEET ($ Thousands) (Unaudited) 06/30/23 12/31/22 Cash $ 503,052 $ 456,439 Working Capital $ 860,159 $ 708,451 Goodwill $ 927,485 $ 919,151 Identifiable Intangible Assets, Net $ 574,475 $ 593,975 Total Debt (excludes operating leases)
Slide 11: Balanced Capital Allocator
EMCOR GROUP, INC. SEPTEMBER 21, 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. SEPTEMBER 21, 2023 2023 – OUTLOOK FOR REMAINDER OF YEAR » Non-residential market is projected to grow for remainder of 2023 Resilient demand and projected growth in network & communications (data centers) and high-tech manufacturing projects (semiconductor and EVs / EV value chai
Slide 13: 2023 Guidance - Revised
EMCOR GROUP, INC. SEPTEMBER 21, 2023 2023 GUIDANCE - REVISED Revenues $12.0 - $12.5 Billion Diluted EPS* $10.75 - $11.25 Was $9.25 - $10.00 * Assumes 27.5% to 28.0% effective tax rate
Slide 14: Market Outlook – Data Centers
EMCOR GROUP, INC. SEPTEMBER 21, 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 “
Slide 15: Market Outlook – Industrial / Manufacturing
EMCOR GROUP, INC. SEPTEMBER 21, 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
Slide 16: Market Outlook – Energy Transition / Expansion
EMCOR GROUP, INC. SEPTEMBER 21, 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 project
Slide 17: Market Outlook – Mechanical Services
EMCOR GROUP, INC. SEPTEMBER 21, 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 Organizat
Slide 18: Market Outlook – Semiconductor
EMCOR GROUP, INC. SEPTEMBER 21, 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
Slide 19: EMCOR
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EMCOR Group — D.A. Davidson 22nd Annual Diversified Industrials & Services Conference 2023 on 6ix