QUARTER THREE 2023 FINANCIAL RESULTS

OCTOBER 26, 2023

THIRD QUARTER 2023 FINANCIAL RESULTS

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 obligation to update any such forward-looking statements, unless required by law. These forward-looking statements may include statements regarding anticipated future operating and financial performance, including financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations; our ability to pursue acquisitions; our ability to return capital to shareholders; market opportunities; market growth prospects; customer trends; project mix; and projects with varying profit margins and contractual terms. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements do not guarantee future performance or events. Applicable risks and uncertainties include, but are not limited to, adverse effects of general economic conditions; changes in interest rates; domestic and international political developments; changes in the specific markets for EMCOR's services; adverse business conditions, including labor market tightness and/or disruption, productivity challenges, the nature and extent of supply chain disruptions impacting availability and pricing of materials, and inflationary trends more generally, including fluctuations in energy costs; the impact of legislation and/or government regulations; the availability of adequate levels of surety bonding; increased competition; and unfavorable developments in the mix of our business. Certain of the risk factors associated with EMCOR's business are also discussed in Part I, Item 1A "Risk Factors," of the Company's 2022 Form 10-K, and in other reports we file from time to time with the Securities and Exchange Commission and available at www.sec.govand www.emcorgroup.com. Such risk factors should be taken into account in evaluating our business, including any forward-looking statements.

Non-GAAP Measures

This presentation and the related press release also include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the press release that accompanies this presentation. The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally. We also believe that these non-GAAP measures provide investors with useful information with respect to our ongoing operations. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP, and may not be comparable to the calculation of similar measures of other companies.

2

THIRD QUARTER 2023 FINANCIAL RESULTS

EMCOR PARTICIPANTS

»

Tony Guzzi

Chairman, President & Chief Executive Officer

»

Mark Pompa

EVP & Chief Financial Officer

»

Maxine Mauricio

EVP & General Counsel

»

Kevin Matz

EVP, Shared Services

»

Andy Backman

VP, Investor Relations

3

THIRD QUARTER 2023 FINANCIAL RESULTS

2023 QTR. 3 - EXECUTIVE SUMMARY

  • Excellent operating performance in Qtr. 3
    • Record quarterly revenues, gross profit, operating income, operating

margin, and diluted EPS

($ Millions, except per share information)

2023

2022

$ Δ

Revenues:

$3,207

$2,826

$381

Operating Income:

‒ GAAP

$235.0

$150.1

$84.9

7.3%

5.3%

‒ Non-GAAP*

$237.3

$150.1

$87.2

7.4%

5.3%

Diluted EPS:

‒ GAAP

$3.57

$2.16

$1.41

‒ Non-GAAP*

$3.61

$2.16

$1.45

  • Remaining Performance Obligations increased by $1.53 billion or 21.6% from 9/30/22; Broad-based growth with a strong mix

of work and projects

4

* Excludes impact of impairment loss on long-lived assets in 2023

THIRD QUARTER 2023 FINANCIAL RESULTS

2023 QTR. 3 - EXECUTIVE SUMMARY

  • Outstanding volume growth and improved profitability driven by solid execution
  • Continued strength in:
    • Network & communications (data centers and low voltage), high-tech manufacturing (semiconductor, EV value chain, biotech, life sciences, and pharmaceutical) and healthcare market sectors
    • Projects supporting the onshoring of supply chain and domestic capacity expansion
    • Demand for energy efficiency and retrofit projects, building automation and controls, IAQ upgrades, and maintenance and repair service
    • Demand for our nationwide fire & life safety projects and services
  • Balance sheet remains strong and liquid to support organic growth and prudent capital allocation model

5

THIRD QUARTER 2023 FINANCIAL RESULTS

2023 QTR. 3 - REMAINING PERFORMANCE OBLIGATIONS

  • RPOs total $8.64 billion, up 21.6% compared to 9/30/22
  • U.S. RPOs UP $1.52 billion or 21.9%
    • Combined U.S. Construction Segments UP
    • U.S. Building Services Segment UP
    • U.S. Industrial Services Segment UP

($ Millions)

Sept. 2023

vs. Sept. 2022

$1,329 23.3%

$184 16.3%

$11 9.1%

  • U.K. Building Services Segment UP

$10 7.2%

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THIRD QUARTER 2023 FINANCIAL RESULTS

2023 QTR. 3 - REVENUES

  • Consolidated quarterly revenues of $3.21 billion

Change from

Qtr. 3 2022

Qtr. 3

($ Millions) (Unaudited)

2023

$

%

U.S. Electrical Construction & Facilities Services

$

697.4

$

64.0

10.1%

U.S. Mechanical Construction & Facilities Services

1,329.6

221.0

19.9%

Total U.S. Construction

2,027.0

285.0

16.4%

U.S. Building Services

817.7

98.3

13.7%

U.S. Industrial Services

252.2

4.9

2.0%

Total U.S. Operations

3,096.9

388.2

14.3%

U.K. Building Services

110.7

(7.0)

-5.9%

Total EMCOR

$ 3,207.6

$ 381.2

13.5%

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THIRD QUARTER 2023 FINANCIAL RESULTS

2023 QTR. 3 - OPERATING INCOME

  • Operating income of $235.0 million or 7.3% of revenues

Operating Income (Loss) For the Quarter Ended September 30, 2023:

(Unaudited)

  • U.S. Electrical Construction and Facilities Services of $63.1 million: $27.6 million or 77.5% increase
  • U.S. Mechanical Construction and Facilities Services of $138.5 million: $48.0 million or 53.0% increase

Total U.S. Construction

  • U.S. Building Services of $57.2 million: $11.1 million or 24.1% increase
  • U.S. Industrial Services of $(0.2) million: $1.2 million improvement
  • U.K. Building Services of $8.9 million: $0.5 million or 6.0% increase

Total EMCOR Operating Margin

Non-GAAP Operating Margin*

Operating Margin

For the Quarter Ended

September 30,

2023

2022

9.1%

5.6%

10.4%

8.2%

9.9%

7.2%

7.0%

6.4%

-0.1%

-0.6%

8.0%

7.1%

7.3%

5.3%

7.4%

5.3%

8

* Excludes impact of impairment loss on long-lived assets in 2023

THIRD QUARTER 2023 FINANCIAL RESULTS

KEY FINANCIAL DATA - INCOME STATEMENT

($ Thousands, except per share information) (Unaudited)

For the Quarter Ended

September 30,

Variance

2023

2022

$

%

Revenues

$

3,207,598

$

2,826,361

$

381,237

13.5%

Gross Profit

545,472

413,231

132,241

32.0%

17.0%

14.6%

Selling, General and Administrative Expenses

308,139

263,137

45,002

17.1%

Impairment Loss on Long-Lived Assets

2,350

-0

2,350

#DIV/0!N/M

Operating Income

$

234,983

$

150,094

$

84,889

56.6%

7.3%

5.3%

Net Income Attributable to EMCOR Group, Inc.

$

169,409

$

105,772

$

63,637

60.2%

Diluted Earnings per Common Share

$

3.57

$

2.16

$

1.41

65.3%

Non-GAAP Operating Income *

$

237,333

$

150,094

$

87,239

58.1%

7.4%

5.3%

Non-GAAP Net Income *

$

171,108

$

105,772

$

65,336

61.8%

Non-GAAP Diluted Earnings per Common Share *

$

3.61

$

2.16

$

1.45

67.1%

9

* Excludes impact of impairment loss on long-lived assets in 2023

THIRD QUARTER 2023 FINANCIAL RESULTS

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%

14.1%

Selling, General and Administrative Expenses

882,684

761,099

121,585

16.0%

Impairment Loss on Long-Lived Assets

2,350

0

2,350

#DIV/0!

-

N/M

Operating Income

$

586,560

$

387,695

$

198,865

51.3%

6.4%

4.8%

Net Income Attributable to EMCOR Group, Inc.

$

421,477

$

279,822

$

141,655

50.6%

Diluted Earnings per Common Share

$

8.85

$

5.50

$

3.35

60.9%

Non-GAAP Operating Income *

$

588,910

$

387,695

$

201,215

51.9%

6.4%

4.8%

Non-GAAP Net Income *

$

423,176

$

279,822

$

143,354

51.2%

Non-GAAP Diluted Earnings per Common Share *

$

8.88

$

5.50

$

3.38

61.5%

10

* Excludes impact of impairment loss on long-lived assets in 2023

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EMCOR Group Inc. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 11:40:22 UTC.