Emcor Group is a construction and infrastructure company based out of Connecticut, USA. It provides mechanical and electrical construction, industrial as well as energy infrastructure and facilities services to commercial, industrial, utility and institutional customers. Its contracts are generally for large installation projects worth millions of dollars. The prospects of the Emcor Group are closely linked with the performance of the construction industry.
Emcor Reported Its 3Q2020 Earnings Recently
In October, Emcor Group reported its third-quarter 2020 earnings. Revenue was down 3.8% year-over-year at $2.2 billion. Diluted EPS for the quarter was also down from $1.45 per share in the third quarter of 2019 to $1.11 per share in the third quarter of 2020. However, the operating cash flow was up year-on-year at 270 million, a growth of 23.3%.
Among segments, the US electrical construction and facilities segment saw a drop in revenue from $554 million to $508 million. The US mechanical construction and facilities services saw a growth in revenue from $869 million to $891 million. US building services segment was also up from $532 million to $551 million. The US industrial services segment experienced a significant fall from $234 million to $139 million.
Commenting on the industrial services segment’s performance, company CEO Anthony Guzzi said, “We are well positioned with our customers rebound, we have reset the business through aggressive cost-cutting and redeploying personnel to the work that is available. The issue is our field supervision is absorbed and productive. However, they are capable of managing much larger work scopes versus what is available today, and that is where the leverage is in this segment.”
Emcor Group’s stock is up 27% in the past month. It closed at $88 on 25th November 2020. Emcor’s peer is Comfort Systems USA. It is into mechanical services, heating, ventilation, and air-conditioning. Its stock closed at $51 on 25th November 2020, down 5% for the past month. Emcor is among the top-performing construction services stocks at the moment.