Emcor is a leading mechanical and electrical construction company based out of Connecticut, USA. The company is often counted among the best construction companies. The name “Emcor” is a fusion of the letters used in electrical, mechanical, and core. The company has grown its revenues from $6.7 billion in 2015 to $9.1 billion in 2019. Its net income has also grown at a robust pace, up from $172 million in 2015 to $325 million in 2019. Emcor reported its third-quarter 2020 earnings towards the end of October a few weeks ago.
Emcor Group 3Q2020 Results
Quarterly consolidated revenues for the third quarter came in at $2.2 billion, a drop of 3.8% on a year-on-year basis. While the US mechanical construction and services segment revenues increased by $22 million to $891 million, a rise of 2.6%, the US electrical construction and services revenues fell by $45 million to $508 million, a drop of 8.3% on a year-on-year basis. US building services segment did alright, rising by 3.7% year-on-year to $551 million. However, the US industrial services segment saw a significant drop of 40%, with revenues coming in at $139 million. Lastly, the Emcor UK segment revenues were up 12.7% to $110 million.
Best Construction Stocks To Buy In 2020 – Emcor Management Commentary
Commenting on the third-quarter 2020 results, Emcor CEO Anthony Guzzi said, “We had excellent operational performance and cost control. Our team executed with focus, discipline and precision. We continue to take steps to keep our skilled trades workforce safe, motivated and productive. We achieved this performance despite a very difficult operating environment for our EMCOR Industrial Services segment, which you know focuses on downstream, petrochemical and oil and gas. And refining.”
Company CFO Mark Pompa added, “Reported operating income for the quarter of $135.9 million represents a $20.1 million increase or 17.4% as compared to operating income of $115.7 million in 2019’s third quarter. This represents an all-time quarterly operating income record for EMCOR, which is quite remarkable performance when you consider the economic backdrop.”