Record 2018 for EMCOR
EMCOR Group has announced record revenues of US$8.13 billion and a 27.7 per cent increase over 2017 figures in diluted earnings per share (EPS) from continuing operations, in full-year 2018 results published today.
The group also reported a 5.1 per cent increase in operating income to US $113.6 million for the final quarter of 2018.
Commenting on the results, EMCOR Group Chairman, President and Chief Executive Officer, Tony Guzzi, said:
“The Company closed out another terrific year achieving record quarterly revenues, operating income, net income and diluted earnings per share from continuing operations. We delivered a 10.8 per cent increase in revenues during the fourth quarter and a 5.8 per cent increase for the year, the majority of which was organic, underscored by broad-based strength across our segments. Our exceptional execution coupled with disciplined cost control drove strong operating margins of 5.1 per cent and 5.0 per cent for the fourth quarter and full year, respectively. Despite posting impressive revenue growth, our remaining performance obligations continue to be solid and diverse across end market sectors, and we remain well-positioned to capitalize on the sustained non-residential construction growth expected throughout 2019.
“Our U.S. Construction segments continue to deliver robust revenue performance, with combined revenue growth of 5.7 per cent and 3.8 per cent for the fourth quarter and full year, respectively, reflecting sustained market demand for our services. Solid operating margins of 7.1 per cent in our U.S. Electrical Construction segment and 7.3 per cent in our U.S. Mechanical Construction segment for the full-year period reflect strong execution across our portfolio of construction projects. Our U.S. Building Services segment continued its strong operational performance, posting double-digit revenue and operating income growth for the fourth quarter, primarily driven by our mechanical, energy and commercial site-based services operations. As expected, we saw a recovery in demand in our U.S. Industrial Services segment during the fourth quarter, with improvement in both our shop and field services operations, including turnaround project activity. Finally, our U.K. Building Services segment had a strong 2018, delivering revenue and operating income growth of 21.8 per cent and 23.4 per cent, respectively, for the full-year period, as we continue to execute on specialty project opportunities and new service contract awards.
“Following a record year, we are optimistic about our opportunities to drive sustained growth across our business. Our guidance for 2019 reflects our expanding customer base and diverse pipeline of project activity, while also considering the limited visibility we have into the second half of the year. Looking ahead, we will continue to leverage our flexible balance sheet to invest in our business, consistent with our strategy, and return capital to shareholders through share buybacks and dividends.”
EMCOR is forecasting full-year 2019 revenues of between US $8.3 billion and US $8.4 billion.