We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EMCOR's (EME) Arm Wins 5-Yr Facilities Services Contract
Read MoreHide Full Article
Shares of EMCOR Group, Inc. (EME - Free Report) have increased 20.7% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s 6.5% growth. The company has been banking on solid acquisition strategies, strength in the U.S. Mechanical and Electrical Construction segments and impressive liquidity management. Also, its building services segment is experiencing facilities maintenance contracts with new customers and increased project work with existing customers.
Recently, its EMCOR Facilities Services, Inc. (EFS) received a five-year facility services contract with Siemens Energy. Per the deal, EME will render services in 49 sites across the United States and Canada in North America and 30 sites across 10 countries in Europe, including 15 sites in the U.K. In Europe, EFS will provide services in partnership with European Customer Synergy (ECS), a pan-European FM services provider.
Keith Chanter, CEO at EMCOR UK, stated, "Our relationship with Siemens dates to 2014 and it’s a testament to our successful partnership that EMCOR is now being entrusted to deliver services in the US and UK. We look forward to providing IFM services in the UK for another five years for Siemens Energy."
Image Source: Zacks Investment Research
EFS is a division of EMCOR Building Services and EMCOR Group (UK) plc. In second-quarter 2022, the U.S. Building Services segment’s revenues rose 10.8% from the prior-year period’s levels, driven by solid growth in the HVAC repair service and commercial site-based services division. Operating income also increased 17.3% year over year and margin improved 30 bps.
During the first half of 2022, it acquired a company specializing in building automation and controls in the Southwestern region within the United States building services segment. Also, in 2021, it acquired four companies within the U.S. building services segment, one providing mobile mechanical services across North Texas and three delivering either mobile mechanical services or building automation and controls solutions.
This leading mechanical and electrical construction, industrial and energy infrastructure and building services provider have been enjoying strong project growth since 2021. Total Remaining Performance Obligations or RPOs increased 22% in 2021 and 24.5% at March end. The RPOs at June end were $6.46 billion, up 26.5% from the prior year. EMCOR continues seeing demand for electrical mechanical systems in new construction and retrofit projects.
The industry is witnessing higher costs, labor woes and supply constraints. Also, its connection with the highly volatile oil and gas industry concerns EMCOR and other industry players like Dycom Industries, Inc. (DY - Free Report) , Primoris Services Corporation (PRIM - Free Report) and MasTec, Inc. (MTZ - Free Report) .
However, this Zacks Rank #2 (Buy) company is poised to regain on a strong growth prospect. EME’s bottom line topped the Zacks Consensus Estimate in 19 of the trailing 21 quarters. Earnings estimates for 2022 suggest 9.5% year-over-year growth. The company currently has a VGM Score of B, supported by both the Value and Growth Score of B.
A Brief Overview of Other Stocks
Dycom is benefiting from the higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services. The persistent impacts of a large customer program complexity, lower year-over-year revenues related to other large customers and higher fuel costs are a concern. The prospects of the Telecommunication business look good, given increased customers’ need to expand capacity and improve the performance of existing networks and, in certain instances, deploy new networks. Dycom expects considerable opportunities across a broad array of customers.
Primoris — a Zacks Rank #2 company — is a specialty contractor company operating in the United States and Canada. A robust backlog level of more than $4 billion and solid contract awards in the Energy/Renewables and Utilities segments depict incredible momentum in the future despite the supply chain and permitting challenges. Utility-scale solar projects continued to drive the progress of the Energy/Renewables segment.
Primoris’ earnings for 2022 are expected to grow 18.4%.
MasTec — a Zacks Rank #3 company — is a leading infrastructure construction company operating mainly throughout North America. MasTec has been benefiting from solid performance across the non-Oil and Gas business, strong backlog, and recent acquisitions. It is one of the largest clean energy contractors in the country. Its expertise in constructing wind farms, solar farms, biomass facilities, high-voltage transmission lines, substations, battery storage and hydrogen-enabled solutions uniquely position the company to grow further in this pro-clean energy Biden’s administration.
Estimates for MTZ’s 2022 earnings are expected to fall 44.6% year over year but is likely to rise 79.1% in 2023.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
EMCOR's (EME) Arm Wins 5-Yr Facilities Services Contract
Shares of EMCOR Group, Inc. (EME - Free Report) have increased 20.7% in the past three months compared with the Zacks Building Products - Heavy Construction industry’s 6.5% growth. The company has been banking on solid acquisition strategies, strength in the U.S. Mechanical and Electrical Construction segments and impressive liquidity management. Also, its building services segment is experiencing facilities maintenance contracts with new customers and increased project work with existing customers.
Recently, its EMCOR Facilities Services, Inc. (EFS) received a five-year facility services contract with Siemens Energy. Per the deal, EME will render services in 49 sites across the United States and Canada in North America and 30 sites across 10 countries in Europe, including 15 sites in the U.K. In Europe, EFS will provide services in partnership with European Customer Synergy (ECS), a pan-European FM services provider.
Keith Chanter, CEO at EMCOR UK, stated, "Our relationship with Siemens dates to 2014 and it’s a testament to our successful partnership that EMCOR is now being entrusted to deliver services in the US and UK. We look forward to providing IFM services in the UK for another five years for Siemens Energy."
Image Source: Zacks Investment Research
EFS is a division of EMCOR Building Services and EMCOR Group (UK) plc. In second-quarter 2022, the U.S. Building Services segment’s revenues rose 10.8% from the prior-year period’s levels, driven by solid growth in the HVAC repair service and commercial site-based services division. Operating income also increased 17.3% year over year and margin improved 30 bps.
During the first half of 2022, it acquired a company specializing in building automation and controls in the Southwestern region within the United States building services segment. Also, in 2021, it acquired four companies within the U.S. building services segment, one providing mobile mechanical services across North Texas and three delivering either mobile mechanical services or building automation and controls solutions.
This leading mechanical and electrical construction, industrial and energy infrastructure and building services provider have been enjoying strong project growth since 2021. Total Remaining Performance Obligations or RPOs increased 22% in 2021 and 24.5% at March end. The RPOs at June end were $6.46 billion, up 26.5% from the prior year. EMCOR continues seeing demand for electrical mechanical systems in new construction and retrofit projects.
The industry is witnessing higher costs, labor woes and supply constraints. Also, its connection with the highly volatile oil and gas industry concerns EMCOR and other industry players like Dycom Industries, Inc. (DY - Free Report) , Primoris Services Corporation (PRIM - Free Report) and MasTec, Inc. (MTZ - Free Report) .
However, this Zacks Rank #2 (Buy) company is poised to regain on a strong growth prospect. EME’s bottom line topped the Zacks Consensus Estimate in 19 of the trailing 21 quarters. Earnings estimates for 2022 suggest 9.5% year-over-year growth. The company currently has a VGM Score of B, supported by both the Value and Growth Score of B.
A Brief Overview of Other Stocks
Dycom is benefiting from the higher demand for network bandwidth and mobile broadband, extended geography, proficient program management and network planning services. The persistent impacts of a large customer program complexity, lower year-over-year revenues related to other large customers and higher fuel costs are a concern. The prospects of the Telecommunication business look good, given increased customers’ need to expand capacity and improve the performance of existing networks and, in certain instances, deploy new networks. Dycom expects considerable opportunities across a broad array of customers.
Dycom’s, currently sports a Zacks Rank #1 (Strong Buy), earnings for fiscal 2023 are expected to grow 142.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Primoris — a Zacks Rank #2 company — is a specialty contractor company operating in the United States and Canada. A robust backlog level of more than $4 billion and solid contract awards in the Energy/Renewables and Utilities segments depict incredible momentum in the future despite the supply chain and permitting challenges. Utility-scale solar projects continued to drive the progress of the Energy/Renewables segment.
Primoris’ earnings for 2022 are expected to grow 18.4%.
MasTec — a Zacks Rank #3 company — is a leading infrastructure construction company operating mainly throughout North America. MasTec has been benefiting from solid performance across the non-Oil and Gas business, strong backlog, and recent acquisitions. It is one of the largest clean energy contractors in the country. Its expertise in constructing wind farms, solar farms, biomass facilities, high-voltage transmission lines, substations, battery storage and hydrogen-enabled solutions uniquely position the company to grow further in this pro-clean energy Biden’s administration.
Estimates for MTZ’s 2022 earnings are expected to fall 44.6% year over year but is likely to rise 79.1% in 2023.