Slides
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Second Quarter 2025 Earnings Call July 31, 2025
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2 SECOND QUARTER 2025 FINANCIAL RESULTS Forward-Looking Statements This presentation and related press release 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 include statements regarding anticipated future operating and financial performance; financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations; the timing of future projects; our ability to support organic growth and balanced capital allocation; the financial impact of acquisitions, including the acquisition of Miller Electric; market opportunities and growth prospects; customer trends; and project mix. 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; domestic and international political developments and/or conflicts; changes in the specific markets for EMCOR’s services; weakness of the sectors from which we generate revenues; adverse business conditions; scarcity of skilled labor; productivity challenges; the nature and extent of supply chain disruptions impacting availability and pricing of materials; inflationary trends, including fluctuations in energy costs; the impact of legislation and/or government regulations; changes in interest rates; changes in foreign trade policy including the effect of tariffs; the lack of availability of adequate levels of surety bonding; increased competition; the impact of legal proceedings, claims, lawsuits, or governmental investigations; 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 2024 Form 10-K, and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov and 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 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. In addition, forecast non-GAAP diluted earnings per share for full-year 2025 is a forward-looking non-GAAP financial measure. The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP on a forward-looking basis because such reconciliations are not accessible without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of adjustments such as acquisition related transaction costs that impact comparability and the periods in which such items may be recognized. FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES
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3 SECOND QUARTER 2025 FINANCIAL RESULTS EMCOR PARTICIPANTS Tony Guzzi Chairman, President, & Chief Executive Officer Jason Nalbandian SVP & Chief Financial Officer Maxine Mauricio EVP, Chief Administrative Officer, & General Counsel Andy Backman VP, Investor Relations
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4 SECOND QUARTER 2025 FINANCIAL RESULTS » Continued growth and performance supported by customers’ confidence in our ability to execute well on complex projects, a proactive expansion into new geographies to better serve our customers, and strong demand in attractive and diverse end markets » Record Remaining Performance Obligations (RPOs) of $11.91 billion, up $2.92 billion or 32.4% year-over-year, and up $1.81 billion or 17.9% from December 2024 » Focused, disciplined and experienced field leadership, excellent project and labor planning & estimating, and investments in VDC, prefabrication, and automation, drive increased productivity, strong execution, and successful project outcomes for our customers » Miller Electric integration is on-track; core values, culture, operating discipline, and best practices are aligned and provide foundation for success » Executed successful restructuring in U.S. Building Services site-based business » Balance sheet remains strong and liquid, supporting organic growth and enabling us to win and complete complex and sophisticated projects; We remain committed to balanced and disciplined capital allocation model EXECUTIVE SUMMARY – SECOND QUARTER 2025 ($ Millions, except per share information) 2Q25 2Q24 Change ($) Change (%) Revenues $4,304 $3,667 $637 17.4% Operating Income $415 $333 $82 24.8% Operating Margin 9.6% 9.1% Diluted EPS $6.72 $5.25 $1.47 28.0% (Unaudited)
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5 SECOND QUARTER 2025 FINANCIAL RESULTS $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 06/30/24 12/31/24 6/30/25 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 6/30/24 12/31/24 6/30/25 REMAINING PERFORMANCE OBLIGATIONS » Diverse RPOs of $11.91 billion; +$2.92 billion Y/Y* Commercial Network & Communications Healthcare High-Tech Manufacturing Institutional TransportationWater & Wastewater Short Duration Projects Manufacturing & Industrial Hospitality & Entertainment * Includes $947 million of RPOs from Miller Electric as of June 30, 2025 $8,999 $10,102 $11,914 Mechanical Electrical Building Services Industrial Services EMCOR UK $8,999 $10,102 $11,914 By Segment ($ Millions) (Unaudited) By Market Sector ($ Millions) (Unaudited)
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6 SECOND QUARTER 2025 FINANCIAL RESULTS SECOND QUARTER – REVENUES » Record consolidated quarterly revenues of $4.30 billion ($ Millions) (Unaudited) 2Q25 $ % U.S. Electrical Construction & Facilities Services 1,340.2$ 540.2$ 67.5% U.S. Mechanical Construction & Facilities Services 1,755.3 100.1 6.0% Total U.S. Construction 3,095.5 640.3 26.1% U.S. Building Services 793.2 12.2 1.6% U.S. Industrial Services 281.1 (43.0) -13.3% Total U.S. Operations 4,169.8 609.5 17.1% U.K. Building Services 134.6 28.0 26.3% Total EMCOR 4,304.4$ 637.5$ 17.4% Second Quarter 2024 Variance from
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7 SECOND QUARTER 2025 FINANCIAL RESULTS 11.1% 12.9% 12.3% 6.0% 3.9% 5.4% 9.1% 11.8% 13.6% 12.8% 6.3% -0.1% 6.3% 9.6% U.S. Electrical Construction & Facilities Services U.S. Mechanical Construction & Facilities Services Total U.S. Construction U.S. Building Services U.S. Industrial Services U.K. Building Services Total EMCOR Operating Margin % By Segment 2Q24 2Q25 SECOND QUARTER – OPERATING INCOME » $415.2 million or 9.6% of revenues; +$82.4 million Y/Y U.S. Electrical Construction & Facilities Services U.S. Mechanical Construction & Facilities Services Total U.S. Construction U.S. Building Services U.S. Industrial Services U.K. Building Services Total EMCOR Operating Margin % by Segment 2Q 2024 2Q 2025 ($ Millions) (Unaudited) 2Q25 $ % U.S. Electrical Construction & Facilities Services 157.7$ 69.1$ 78.0% U.S. Mechanical Construction & Facilities Services 238.7 25.3 11.9% Total U.S. Construction 396.4 94.4 31.2% U.S. Building Services 50.0 3.2 6.8% U.S. Industrial Services (0.4) (13.2) -103.3% U.K. Building Services 8.4 2.6 45.8% Second Quarter 2024 Variance from -0.1%
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8 SECOND QUARTER 2025 FINANCIAL RESULTS KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) (Unaudited) 2025 2024 $ % Revenues 4,304,400$ 3,666,897$ 637,503$ 17.4% Gross Profit 833,771 684,001 149,770 21.9% 19.4% 18.7% Selling, General and Administrative Expenses 418,559 351,193 67,366 19.2% 9.7% 9.6% Operating Income 415,212$ 332,808$ 82,404$ 24.8% 9.6% 9.1% Diluted Earnings per Common Share 6.72$ 5.25$ 1.47$ 28.0% Variance For the Quarter Ended June 30,
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9 SECOND QUARTER 2025 FINANCIAL RESULTS KEY FINANCIAL DATA – INCOME STATEMENT ($ Thousands, except per share information) (Unaudited) * Excludes transaction expenses related to the acquisition of Miller Electric in 1Q25 2025 2024 $ % Revenues 8,171,772$ 7,099,173$ 1,072,599$ 15.1% Gross Profit 1,556,489 1,273,310 283,179 22.2% 19.0% 17.9% Selling, General and Administrative Expenses 822,521 680,549 141,972 20.9% 10.1% 9.6% Operating Income 733,968$ 592,761$ 141,207$ 23.8% 9.0% 8.3% Diluted Earnings per Common Share 11.96$ 9.41$ 2.55$ 27.1% Non-GAAP Operating Income* 743,321$ 592,761$ 150,560$ 25.4% 9.1% 8.3% Non-GAAP Diluted Earnings per Common Share* 12.11$ 9.41$ 2.70$ 28.7% Variance For the Six Months Ended June 30,
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10 SECOND QUARTER 2025 FINANCIAL RESULTS KEY FINANCIAL DATA – BALANCE SHEET ($ Thousands) (Unaudited) 06/30/25 12/31/24 Cash 485,988$ 1,339,550$ Working Capital 782,108$ 1,235,326$ Goodwill 1,351,824$ 1,018,415$ Identifiable Intangible Assets, Net 1,082,028$ 648,180$ Total Debt (excludes operating leases) 256,386$ 6,095$ Stockholders' Equity 3,053,572$ 2,938,694$ Total Debt / Total Capitalization 7.7% 0.2%
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11 SECOND QUARTER 2025 FINANCIAL RESULTS 2025 GUIDANCE AND SUMMARY * Excludes acquisition related transaction costs and assumes ~27% effective income tax rate » Outlook supported by record RPOs of $11.91 billion and healthy project pipeline » Our operating teams continue to execute and deliver for our customers on complex and difficult projects » Continue to execute well in large, diverse and attractive end markets with strong demand and long- term secular trends, including Network and Communications (e.g. data centers); High-Tech Manufacturing (semiconductors, biotech, life sciences and pharmaceutical); Manufacturing and Industrial (driven by reshoring and domestic capacity expansion and alternative energy projects); and Healthcare » Robust demand for fire life safety projects and aftermarket services continues across most sectors » Solid HVAC aftermarket growth opportunities driven by energy efficiency / Indoor Air Quality (IAQ), retrofit projects, and building controls installations and upgrades » Macro uncertainties persist, including trade policy impacts (such as tariffs), supply chain disruption, elevated interest rates, legislative trends, energy and tax policy, and global conflicts » Continue to manage costs and exercise discipline, train and share best practices » Expect to continue our disciplined approach to capital allocation, focused on organic investment, strategic acquisitions, and returning capital to shareholders will continue to drive value and amplify opportunities for us Current Guidance (7/31/25) Previous Guidance (4/30/25) Revenues $16.4 billion – $16.9 billion $16.1 billion - $16.9 billion Operating Margin 9.0% - 9.4% 8.5% - 9.2% Non-GAAP Diluted EPS* $24.50 – $25.75 $22.65 - $24.00
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12 SECOND QUARTER 2025 FINANCIAL RESULTS CAPITAL ALLOCATION TRENDS 60.3% 42.2% 20.6% 81.9% 22.0% 31.3% 11.8% 28.8% 27.3% 63.5% 40.8% 10.3% 13.6% 12.4% 13.2% 21.0% 9.6% 5.9% 23.4% 9.0% 3.9% 9.5% 5.0% 7.5% 5.3% 4.9% 7.7% 7.4% 3.3% 9.7% 5.2% 1.6% 4.6% 24.4% 36.7% 61.7% 49.3% 51.7% 79.0% 38.1% 58.5% 31.0% 45.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* 2016 - 2025 YTD* EMCOR Capital Allocation by Year (%) Business Reinvestment Acquisitions Capex Shareholder Return Dividends Share Repurchases ~50% ~50% * Through June 30, 2025
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13 SECOND QUARTER 2025 FINANCIAL RESULTS Second Quarter 2025 Earnings Call July 31, 2025