EMCOR : Quarter 1 Earnings Call

FIRST QUARTER 2024 FINANCIAL RESULTS

APRIL 25, 2024

FIRST QUARTER 2024 FINANCIAL RESULTS

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES

Forward-Looking Statements

This presentation and related press release contain forward-looking statements. Such statements speak only as of the date on the cover of this slide deck, and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements may include statements regarding anticipated future operating and financial performance, including financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations and timing of future projects; our ability to be prudent allocators; our ability to pursue organic and strategic investments and acquisitions; our ability to return capital to shareholders, including through share repurchases and dividends; market opportunities; market growth prospects; customer trends; and project mix. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements do not guarantee future performance or events. Applicable risks and uncertainties include, but are not limited to, adverse effects of general economic conditions; domestic and international political developments; changes in the specific markets for EMCOR's services; adverse business conditions, including labor market tightness and/or disruption, productivity challenges, the nature and extent of supply chain disruptions impacting availability and pricing of materials, and inflationary trends more generally, including fluctuations in energy costs; the impact of legislation and/or government regulations; changes in interest rates; the availability of adequate levels of surety bonding; increased competition; and unfavorable developments in the mix of our business. Certain of the risk factors associated with EMCOR's business are also discussed in Part I, Item 1A "Risk Factors," of the Company's 2023 Form 10-K, and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.govand www.emcorgroup.com. Such risk factors should be taken into account in evaluating our business, including any forward-looking statements.

Non-GAAP Measures

This presentation and related press release also include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the press release that accompanies this presentation. The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally. We also believe that these non-GAAP measures provide investors with useful information with respect to our ongoing operations. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP, and may not be comparable to the calculation of similar measures of other companies.

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FIRST QUARTER 2024 FINANCIAL RESULTS

EMCOR PARTICIPANTS

Tony Guzzi	Chairman, President & Chief Executive Officer
Jason Nalbandian	SVP & Chief Financial Officer
Maxine Mauricio	EVP, Chief Administrative Officer & General Counsel
Andy Backman	VP, Investor Relations

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FIRST QUARTER 2024 FINANCIAL RESULTS

EXECUTIVE SUMMARY

($ Millions, except per share information) (Unaudited)	1Q24	1Q23	Change ($)	Change (%)
Revenues	$3,432	$2,890	$542	18.7%
Operating Income	$260	$155	$105	67.8%
Operating Margin	7.6%	5.4%
Diluted EPS	$4.17	$2.32	$1.85	79.7%

• Exceptional start to the year with outstanding operating performance
• Record first quarter Revenues, Operating Income, Operating Margin, Diluted EPS, and Operating Cash Flow
• Record Remaining Performance Obligations (RPOs) of $9.18 billion, up 16.5% year-over-year
• Continued strong mix and pipeline of projects in large and growing market sectors with long-term secular trends, including high-tech and traditional manufacturing, and network & communications
• Balance sheet remains strong and liquid to support organic growth and balanced capital allocation model
• Guidance for full-year 2024 Revenue and Diluted EPS increased

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FIRST QUARTER 2024 FINANCIAL RESULTS

FIRST QUARTER - REVENUES

• Consolidated quarterly revenues of $3.43 billion

			Variance from
			First Quarter 2023
($ Millions) (Unaudited)	1Q24		$		%
U.S. Electrical Construction & Facilities Services	$ 764.7	$ 120.0	18.6%
U.S. Mechanical Construction & Facilities Services	1,427.7		349.1		32.4%
Total U.S. Construction	2,192.4	469.1	27.2%
U.S. Building Services	781.2	55.8	7.7%
U.S. Industrial Services	354.0	23.1	7.0%
Total U.S. Operations	3,327.6	548.0	19.7%
U.K. Building Services	104.7	(6.2)	-5.6%
Total EMCOR	$ 3,432.3	$ 541.8	18.7%

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FIRST QUARTER 2024 FINANCIAL RESULTS

FIRST QUARTER - OPERATING INCOME

• $260.0 million or 7.6% of revenues; +$105.0 million Y/Y

														Variance from
													First Quarter 2023
($ Millions) (Unaudited)							1Q24				$			%
U.S. Electrical Construction & Facilities Services	$			91.6				$		51.1	126.1%
U.S. Mechanical Construction & Facilities Services					150.7						64.5		74.8%
Total U.S. Construction								242.3				115.6	91.2%
U.S. Building Services								33.5						(4.2)	-11.1%
U.S. Industrial Services								18.0						2.9	19.6%
U.K. Building Services								5.4						(0.0)	-0.9%
	Operating Margin By Segment %
	Operation Margin % by Segment
				Q1 2023			Q1 2024
12.0%			Q1 2023		Q1 2024
11.1%
10.6%
8.0%	7.4%														7.6%
6.3%
														5.4%
				5.2%			4.5%		5.1%		4.9%	5.1%
				4.3%

		U.S. Electrical Construction	& U.S. Mechanical Construction	Total U.S.	U.S. Building	U.S. Industrial	U.K. Building	Total
		U.S. Electrical	U.S. Mechanical	Total	U.S.	U.S.	U.K.	Total
		Facilities Services	& Facilities Serv es	Construction	Services	Services	Services	EMCOR
6		Construction	Construction	U.S.	Building	Industrial	Building	EMCOR
	& Facilities	& Facilities	Construction	Services	Services	Services
		Services	Services

FIRST QUARTER 2024 FINANCIAL RESULTS

KEY FINANCIAL DATA - INCOME STATEMENT

($ Thousands, except per share information) (Unaudited)

		For the Quarter Ended			Variance
		March 31,
		2024			2023			$			%
Revenues	$	3,432,276	$	2,890,432	$ 541,844			18.7%
Gross Profit		589,309			436,062			153,247			35.1%
		17.2%			15.1%
Selling, General and Administrative Expenses		329,356			281,152			48,204			17.1%
Operating Income	$	259,953	$	154,910	$ 105,043			67.8%
		7.6%			5.4%
Net Income	$	197,149	$	111,473		$	85,676			76.9%
Diluted Earnings per Common Share	$	4.17	$	2.32	$	1.85			79.7%

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FIRST QUARTER 2024 FINANCIAL RESULTS

KEY FINANCIAL DATA - BALANCE SHEET

($ Thousands)

		(Unaudited)
	03/31/24		12/31/23
Cash	$	840,985	$	789,750
Working Capital	$	1,076,644	$	928,616
Goodwill	$	956,549	$	956,549
Identifiable Intangible Assets, Net	$	569,781	$	586,032
Total Debt (excludes operating leases)	$	5,257	$	5,303
Stockholders' Equity	$	2,615,382	$	2,470,815
Total Debt / Total Capitalization		0.2%			0.2%

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FIRST QUARTER 2024 FINANCIAL RESULTS

DRIVING PROFITABLE ORGANIC GROWTH

Data Centers / Connectivity

Network & Communications RPOs

+9% sequentially; +51% Y/Y

• Continued Demand Drivers
• Increased Power Requirements
• AI Accelerated Buildout / Retrofit / Remodel

Energy Efficiency

(Sustainability)

Mechanical Services RPOs +9% sequentially; +8% Y/Y

• HVAC / Control Systems / Lighting Retrofits
• Facilities Footprint Rationalization
• Alternative Energy Solutions
• Government Incentives Support Continued Momentum

Healthcare

Healthcare RPOs

+5% sequentially; +2% Y/Y

• New / More Flexible Hospitals
• Sophisticated Outpatient Facilities

Electrification / EV	Reshoring / Nearshoring	High-Tech Manufacturing /
Value Chain	Life Sciences

High-Tech Manufacturing RPOs: ~= sequentially; +59% Y/Y

Manufacturing and Industrial RPOs: +5% sequentially; +4% Y/Y

» Energy Transition / Expansion	» Critical Supply Chain	» Semiconductor Manufacturing
» Electric Vehicle and Battery	Resilience	» Pharmaceutical / Biotech /
Plant Construction	» Capacity Shifting / Expansion	Life Sciences / R&D Facilities
	» Government Incentives
» EV Charging Stations	» Automation
» Government Incentives	Support Continued Momentum
Support Continued Momentum

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FIRST QUARTER 2024 FINANCIAL RESULTS

REMAINING PERFORMANCE OBLIGATIONS

• Diverse RPOs of $9.18 billion

By Segment ($ Millions) (Unaudited)

$10,000
$10,000					$9,175
$$9,0009,000		$8,847
	$7,873
$8,000
$8,000

$$7,0007,000

$6,000 $6,000

$5,000 $5,000

$$4,0004,000

$$3,0003,000

$2,000 $2,000

$$1,0001,000

$0
$0	3/31/23	12/31/23	3/31/24
	3/31/23	12/31/23	3/31/24

By Market Sector ($ Millions) (Unaudited)

$10,000
$10,000							$9,175
				$8,847
$$9,0009,000
$8,000		$7,873
$8,000
$7,000
$7,000
$6,000
$6,000
$5,000
$5,000
$4,000
$4,000
$3,000
$3,000
$2,000
$2,000
$$1,0001,000
$0
$0		3/31/23	12/31/23		3/31/24
		3/31/23	12/31/23	3/31/24

		Mechanical		Electrical		Building Services
		Industrial Services		EMCOR UK

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Commercial

Healthcare

Water & Wastewater

Short Duration Projects

Network & Communications Institutional

Hospitality & Entertainment

High-Tech Manufacturing

Manufacturing & Industrial

Transportation