EMCOR Group, Inc. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • EMCOR posted a strong Q2 2021, benefiting from improved operating conditions versus Q2 2020, which had been significantly affected by COVID‑19 shutdowns.
  • Revenue reached a record $2.44 billion, up 21% year-over-year (18% organic). This compares to a suppressed Q2 2020 baseline where several markets were partially or fully shut down.
  • Operating income was $133 million, versus a loss in Q2 2020 due to a large impairment charge. Excluding impairments, operating income grew 21% from $110 million in Q2 2020.
  • Diluted EPS was a record $1.78, up from adjusted EPS of $1.44 in Q2 2020.
  • RPOs (Backlog) increased to a record $5.1 billion, up 11.2% year-over-year and 8.9% organically.

Segment Performance

U.S. Electrical Construction

  • Revenue: $489.5 million, up 19.3% (17.2% organic) from Q2 2020.
  • Strong activity in commercial, institutional, healthcare, and data centers.
  • Operating margin: 8.7%, up 100 bps year-over-year due to improved mix and strong execution.

U.S. Mechanical Construction

  • Revenue: $958.7 million, up 21.3% year-over-year.
  • Growth across commercial and healthcare markets, including data centers, e-commerce logistics, and healthcare retrofits.
  • Operating margin: 8.3%, slightly below prior year due to mix impact.

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Operator: Good morning. My name is Jerome, and I will be your conference operator today. At this time, I would like to welcome everyone to the EMCOR Group Second Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Mr. Haskel Kwestel with FTI Consulting. You may begin. Haskel Kwestel: Thank you, Jerome, and good morning, everyone. Welcome to the EMCOR Group conference call. We are here today to discuss the company’s 2021 second quarter results, which were reported this morning. I’d like to turn the call over to Kevin Matz, Executive Vice President of Shared Services who will introduce management. Kevin, please go ahead. Kevin Matz: Thank you, Haskel, and good morning, everybody. As always, thank you for your interest in EMCOR and welcome to our earnings conference call for the second quarter of 2021. It’s amazing to me that we’re already halfway through the year in fact more so now. For those of you who are accessing the call via the Internet and our website, welcome to you as well and we hope you have arrived at the beginning of our slide presentation that will accompany our remarks today. We are on slide two. This presentation and certain -- and discussions contain forward-looking statements and may contain certain non-GAAP financial information. Page two describes in detail the forward-looking statements and the non-GAAP financial inf

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