EMCOR Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>EMCOR Group, Inc. has filed its 2023 10-K, detailing its financial structure and credit facility terms.</b>

AI Summary

EMCOR Group, Inc. (EME) filed a Annual Report (10-K) with the SEC on February 28, 2024. EMCOR Group, Inc. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The company's 2023 Revolving Credit Facility has interest rates based on either a base rate plus a margin of 0.125% to 0.875% or Adjusted Term SOFR plus a margin of 1.125% to 1.875%. The base rate for the credit facility is determined by the greater of prime commercial lending rate, federal funds effective rate, Adjusted Term SOFR, or 0.00%. The filing includes financial data for the fiscal years 2023, 2022, and 2021. EMCOR Group, Inc. is classified under SIC code 1731 (Electrical Work) and operates within the Real Estate & Construction sector.

Why It Matters

For investors and stakeholders tracking EMCOR Group, Inc., this filing contains several important signals. The detailed interest rate structure for EMCOR's 2023 Revolving Credit Facility provides insight into the company's borrowing costs and sensitivity to market rates. The filing of a 10-K is a standard but crucial disclosure for investors, offering a comprehensive overview of the company's financial health, operations, and risks for the past fiscal year.

Risk Assessment

Risk Level: low — EMCOR Group, Inc. shows low risk based on this filing. The filing is a routine 10-K, which is a standard disclosure for publicly traded companies and does not contain unexpected negative information.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to assess EMCOR Group's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-28 — Filing Date (Date the 10-K was filed)
• 0.125% to 0.875% — Base Rate Margin (Margin for base rate under the 2023 Revolving Credit Facility)
• 1.125% to 1.875% — SOFR Margin (Margin for Adjusted Term SOFR under the 2023 Revolving Credit Facility)
• 1731 — SIC Code (Electrical Work)

Key Players & Entities

• EMCOR Group, Inc. (company) — Filer and subject of the report
• Bank of Montreal (company) — Mentioned as a reference for the prime commercial lending rate
• Federal Reserve Bank of New York (company) — Administers the Secured Overnight Financing Rate (SOFR)

FAQ

Industry Context

EMCOR Group operates in the construction and facilities services industry, a sector characterized by project-based work and demand tied to economic conditions.

Regulatory Implications

As a publicly traded company, EMCOR Group is subject to SEC regulations, including the requirement to file annual reports (10-K) detailing its financial performance and business operations.

What Investors Should Do

1. Analyze the detailed interest rate structure of the 2023 Revolving Credit Facility to understand potential borrowing costs.
2. Review the company's financial statements for the fiscal years 2023, 2022, and 2021 to assess performance trends.
3. Examine any disclosed risk factors and management's discussion and analysis for potential business challenges.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date EMCOR Group, Inc. filed its 10-K with the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report, providing a comprehensive year-end overview, which is more detailed than interim filings like 10-Q.

Key Financial Figures

• $12.6 billion — 2023, we had revenues of approximately $12.6 billion. Our services are provided to a broad r
• $10 million — cts, which typically range in size from $10 million up to and occasionally exceeding $200 m
• $200 m — illion up to and occasionally exceeding $200 million, represented approximately 45% of

Filing Documents

• eme-20231231.htm (10-K) — 2659KB
• eme-ex4a_20231231xq4.htm (EX-4.(A)) — 1372KB
• eme-ex10lx10_20231231xq4.htm (EX-10.(L-10)) — 13KB
• eme-ex21_20231231xq4.htm (EX-21) — 6KB
• eme-ex231_20231231xq4.htm (EX-23.1) — 6KB
• eme-ex311_20231231xq4.htm (EX-31.1) — 10KB
• eme-ex312_20231231xq4.htm (EX-31.2) — 10KB
• eme-ex321_20231231xq4.htm (EX-32.1) — 5KB
• eme-ex322_20231231xq4.htm (EX-32.2) — 5KB
• eme-ex951_20231231xq4.htm (EX-95.1) — 2KB
• eme-ex97_20231231xq4.htm (EX-97) — 31KB
• 0000105634-24-000006.txt (&nbsp;) — 16435KB
• eme-20231231.xsd (EX-101.SCH) — 92KB
• eme-20231231_cal.xml (EX-101.CAL) — 119KB
• eme-20231231_def.xml (EX-101.DEF) — 460KB
• eme-20231231_lab.xml (EX-101.LAB) — 1093KB
• eme-20231231_pre.xml (EX-101.PRE) — 757KB
• eme-20231231_htm.xml (XML) — 3013KB

Business

Item 1. Business 1 Overview 1 Operations 2 Competition 5 Human Capital 5 Available Information 7

Risk Factors

Item 1A. Risk Factors 8

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 19 Item 1C. C ybersecurity 19

Properties

Item 2. Properties 20

Legal Proceedings

Item 3. Legal Proceedings 20

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 20 Executive Officers of the Registrant 21 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22

[Reserved]

Item 6. [Reserved] 22

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 37

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 38

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 83

Controls and Procedures

Item 9A. Controls and Procedures 83

Other Information

Item 9B. Other Information 83

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 83 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 84

Executive Compensation

Item 11. Executive Compensation 84

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 84

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 84

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 84 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 85

Form 10-K Summary

Item 16. Form 10-K Summary 89 Table of Contents [This Page Intentionally Left Blank] Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They generally contain words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "may," "can," "could," "might," variations of such wording and other words or phrases of similar meaning. Forward-looking statements in this report include discussions of our future operating or financial performance and other forward-looking commentary regarding aspects of our business, including market share growth, gross profit, remaining performance obligations, project mix, projects with varying profit margins and contractual terms, selling, general and administrative expenses, our ability to maintain a strong safety record, and trends in our business, and other characterizations of future events or circumstances, such as the effects of supply chain disruptions and delays. Each forward-looking statement included in this report is subject to risks and uncertainties, including those identified in the "Risk Factors" section, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, and other sections of this report. 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 scarcity of skilled labor, 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; unfavorable developments in the mix of our business; and othe

BUSINESS

ITEM 1. BUSINESS References to the "Company," "EMCOR," "we," "us," "our" and similar words refer to EMCOR Group, Inc. and its consolidated subsidiaries unless the context indicates otherwise. Overview We are one of the largest specialty contractors in the United States and a leading provider of electrical and mechanical construction and facilities services, building services, and industrial services. In 2023, we had revenues of approximately $12.6 billion. Our services are provided to a broad range of commercial, technology, manufacturing, industrial, healthcare, utility, and institutional customers through approximately 100 operating subsidiaries, which specialize principally in providing construction services relating to electrical and mechanical systems in all types of facilities and in providing various services relating to the operation, maintenance, and management of those facilities. Such operating subsidiaries are organized into the following reportable segments: United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services; and United Kingdom building services. Our operating subsidiaries offer comprehensive and diverse solutions on a broad scale and have many long-standing customer relationships. We provide construction services and building services directly to corporations, municipalities and federal and state governmental entities, owners/developers, and tenants of buildings. We also provide our construction services indirectly by acting as a subcontractor to general contractors, systems suppliers, construction managers, developers, property managers, and other subcontractors. We generally provide industrial services directly to refineries and petrochemical plants. We derive revenues from many different customers in numerous industries, which have operations in several different geographical areas. Of our 2023 reve

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View this 10-K filing on SEC EDGAR