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Data Centers, Renewables and Health-Care Projects Push EMCOR’s Electrical Business to Double-Digit Gains

Feb. 29, 2024
EMCOR's Electrical Construction unit 's revenues were up +14.4%.

There’s a good reason EMCOR shareholders have been smiling recently. Share prices for the Norwalk, CT-based contractor are currently up +33% over its 50-day moving average and nearly +48% over its 200-day moving average, in part because of stellar 4Q 2023 and year-end 2023 financial results.

According to an EMCOR press release, revenues for the fourth quarter of 2023 totaled $3.44 billion, an increase of +16.6%, compared to $2.95 billion for the fourth quarter of 2022. Revenues for the 2023 full-year period totaled $12.58 billion, an increase of +13.6%, compared to $11.08 billion for the 2022 full-year period.

For 4Q 2023, net income was $211.5 million, or $4.47 per diluted share, compared to $126.3 million, or $2.63 per diluted share, for 4Q  2022. Net income for the 2023 full-year period was $633 million, or $13.31 per diluted share, compared to $406.1 million, or $8.10 per diluted share, for the 2022 full-year period. 

Tony Guzzi, the company’s chairman, president, and CEO, had this to say about its U.S. Electrical Construction business segment:

“Our U.S. Electrical Construction segment continued to perform very well as we benefited from consistent strong demand, particularly in the data center market, the energy sector, including several renewable energy projects, and the healthcare market sector, all of which is reflected in the segment’s revenue growth of +14.4% and operating margin of +8.3% for the full year. This segment also benefited from growth within the high-tech manufacturing market sector as demand for our electrical construction services strengthened throughout the year."