EMCOR (EME) investor relations material

Market Positioning and Growth

• Maintained strong positions in data centers, high-tech manufacturing, pharma, bio life sciences, and EV value chain, with data centers accounting for 20–25% of revenue and other markets growing mid single digits.

• Healthcare and institutional markets remain durable, with healthcare representing almost 40% of revenues and balanced between retrofit and new build.

• Achieved $14.6B in 2024 revenue, with over 46,500 employees and 105% operating cash flow conversion.

• Well-positioned to benefit from trends in data centers, electrification, energy efficiency, and sustainability, serving sectors like healthcare, manufacturing, and high-tech.

• Operates at the intersection of megatrends such as data centers, reshoring, sustainability, and energy transition, with a resilient business model adaptable to high-demand markets like semiconductors, biotech, and healthcare.

Financial Performance and Capital Allocation

• For the quarter ended June 30, 2025, revenues grew 17.4% year-over-year to $4.3B, with operating income up 24.8% and diluted EPS up 28%.

• For the six months ended June 30, 2025, revenues rose 15.1% to $8.2B, with operating income up 23.8% and non-GAAP EPS up 28.7%.

• Maintains a strong balance sheet with $486M in cash and 7.7% total debt/capitalization as of June 30, 2025.

• Capital allocation emphasizes business reinvestment, strategic acquisitions, and shareholder returns, with a progressive dividend policy and ongoing share repurchases.

• Operations managers are incentivized on return on net assets, emphasizing cash flow and balance sheet efficiency over pure revenue growth.

Strategic Initiatives and Operational Strengths

• Investments in virtual design, construction (VDC), BIM, and prefabrication drive efficiency, productivity, and enable handling of larger, more complex projects.

• Record remaining performance obligations (RPOs) of $11.91B and a healthy project pipeline provide strong near-term visibility.

• Mechanical and electrical construction outpaced non-residential market growth by 400–500 basis points, with overall margin expansion and strong cash conversion.

• Building services, primarily mechanical, achieved high single to low double-digit EBITDA margins and consistent mid to high single-digit growth despite a flat commercial market.

• Demonstrated ability to pivot to resilient, high-growth sectors and maintain limited exposure to new office construction.