Emcor is one of the leading providers of mechanical and electrical construction services for setting up critical infrastructure. Its clients include corporations and institutions. Emcor Group is a Fortune 500 company with the majority of its business focused on the US market. Emcor earned revenues of $8.8 billion in 2020 and is a fairly large company. It employs close to 33,000 people. Companies like Emcor are great if you believe in the growth prospects of the US economy. Emcor tends to do well when economic activity is strong. Additionally, the planned infrastructure spending of the Biden administration may provide another tailwind for infrastructure service-related businesses. If you want to buy today construction stocks, the Emcor Group is a potential candidate. The current CEO for Emcor is Anthony Guzzi. Emcor has clients in virtually every major sector of the economy, and its wide range of services makes it a well-diversified business.
Second Quarter 2021 Earnings Results
On 29th July 2021, the Emcor Group released its second-quarter 2021 earnings numbers. Total revenues went up 20% year-on-year from $2 billion in Q22020 to $2.4 billion. Earnings per share on a diluted basis also improved significantly from a loss of $1.52 in Q22020 to a profit of $1.78. All segment revenues were up except US industrial services. The remaining performance obligations for Emcor stood at $5.1 billion as compared to $4.6 billion in Q22020. The performance obligation number was up 11% year-on-year. The management was optimistic about the near future, even though it did highlight the rising number of cases in certain parts of the US. However, the overall situation as far as the pandemic was concerned appeared to be stable, according to the CEO Mr Guzzi. Emcor is one of the construction stocks 2021 to add to the watchlist.
The Emcor Group maintained a strong balance sheet. It had long-term debt of $259 million and cash of $668 million. Its GAAP operating margin came in at 5.5% as compared with -6.1% in Q22020. A large part of the revenue growth mentioned above was organic.