EMCOR Posts Record First Quarter Results
Announcing the results today, Tony Guzzi, EMCOR Chairman, President and Chief Executive Officer, said:
"The Company reported record first quarter revenues, operating income, operating margin, net income attributable to EMCOR and diluted earnings per share from continuing operations, building upon our strong momentum in 2018.
"We delivered a 13.6 per cent year-over-year increase in revenues, 11.0 per cent of which was organic, driven by strength in each of our segments, including double-digit growth in our U.S. Electrical Construction, U.S. Building Services and U.S. Industrial Services segments.
"Consistent execution across our business drove operating income growth of 31.2 per cent year-over-year and 60 basis points of operating margin expansion.
"Additionally, remaining performance obligations increased 15.3 per cent year-over-year and 4.9 per cent sequentially, underscoring the value proposition of our services portfolio and the strength we are seeing in the geographies and end markets in which we operate.
"Our U.S. Electrical Construction and U.S. Mechanical Construction segments continued to perform exceptionally, posting revenue increases of 16.1 per cent and 9.9 per cent year-over-year, respectively.
"Our U.S. Electrical Construction segment reported a strong 12.1 per cent organic revenue growth rate, while the segment’s overall growth was further supported by the contribution from a recent acquisition. Strong project execution drove solid operating performance, with our U.S. Construction segments posting a combined 11.2 per cent year-over-year increase in operating income and a very healthy combined operating margin of 6.6 per cent.
"Despite mild winter conditions, our U.S. Building Services segment recorded double-digit revenue and operating income growth for the first quarter of 2019, driven by broad based strength across their mobile mechanical services and commercial site-based services businesses. Our U.S. Industrial Services segment also had solid performance in the quarter, driven by much improved spring turnaround activity compared to the year ago period, resulting in revenue growth of 29.8 per cent year-over-year and 200 basis points of operating margin expansion.
"Despite significant foreign exchange headwinds, our U.K. Building Services segment continued to perform well, driven by new customer wins and strong demand for small- to mid-sized project activity."