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2023 Looks Solid for Two of the Nation's Largest Electrical Contractors

Feb. 24, 2023
The 4Q 2022 financial reports from Quanta and EMCOR point to a good year of growth.

EMCOR and Quanta Services, two of the nation’s largest publicly held contractors with massive electrical operations, announced solid 4Q 2022 results and are quite optimistic about their 2023 business prospects.

EMCOR Group reported a +11.7% increase in its 4Q 2022 revenues to $2.95 billion, and Quanta Services said its revenues for the quarter were $4.42 billion, good for a +12.8% YOY quarterly increase.

Tony Guzzi, EMCOR’s chairman, president and CEO, said in the press release, "Our U.S. Mechanical Construction segment had an exceptional year with +9.5% revenue growth, all of which was organic, and operating margins of +7.7% driven by strong execution on various semiconductor, data center, water and wastewater and health-care projects. Our utilization of BIM and continued enhancements in our prefabrication capabilities allowed us to deliver our services to customers in a safer and more efficient manner and helped counteract supply chain and inflationary challenges.

“Our U.S. Electrical Construction segment’s performance strengthened through the year as expected, and we finished the year more in line with our historical performance and expectations. Our U.S. Building Services segment had another excellent year, driven by outstanding performance across the majority of our service lines including repair service, site-based services, building controls, and HVAC projects. Driving much of this work is the demand for improved energy efficiency as energy prices remain volatile and customers' desire to extend the life of their HVAC equipment due to both long equipment lead times and availability issues.”

At Quanta Services, Duke Austin, the company's president and CEO, said in the press release, “Demand is strong for our infrastructure solutions that support our customers' energy-transition initiatives and increase reliability, safety, efficiency and connectivity through modernization.” The company recently announced that it was selected for the Ready Wyoming Transmission Project by Black Hills Corporation's Cheyenne Light, Fuel and Power. It  will manage and build approximately 260 miles of 230 kV and 115 kV transmission infrastructure and six new and expanded substations in Wyoming and western Nebraska. Construction is planned to start this year with final completion expected by the end of 2025.

Quanta also will be working on Xcel Energy’s Power Pathway Transmission Project in Colorado. It will help construct approximately 610 miles of 345 kV transmission infrastructure, consisting of up to six segments and spanning more than a dozen counties, primarily in eastern Colorado, and includes the installation of four new substations and the expansion of four existing substations.