Stifel Nicolaus
2017 Industrials Conference
June 15, 2017
STIFEL 2017 INDUSTRIALS CONFERENCE
06.15.17
Forward-Looking Statements
This material and related presentation may contain certain forward-looking statements within the meaning
of the Private Securities Reform Act of 1995. Any such comments are based upon information available
to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation
to update any such forward-looking statements. These forward-looking statements may include
statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with
varying profit margins, and selling, general and administrative expenses. These forward-looking
statements involve risks and uncertainties that could cause actual results to differ materially from the
forward-looking statements. Accordingly these statements are no guarantee of future performance. Such
risk and uncertainties include, but are not limited to, adverse effects of general economic conditions,
changes in the political environment, changes in the specific markets for EMCOR’s services, adverse
business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable
labor productivity and mix of business. Certain of the risks and factors associated with EMCOR’s
business are also discussed in the Company’s 2016 Form 10-K and in other reports filed from time to time
with the Securities and Exchange Commission. All these risks and factors should be taken into account
in evaluating any forward-looking statements.
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STIFEL 2017 INDUSTRIALS CONFERENCE
EMCOR Group
 Leading specialty
construction, building and
industrial services provider
 2017 estimated revenues
$7.5B - $7.6B
 ~34,000 employees
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STIFEL 2017 INDUSTRIALS CONFERENCE
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Why EMCOR
 Significant expertise in project execution and service
delivery
̶
Excellence in managing skilled labor
 Disciplined and effective cost management
 Broad array of services delivered into growing end
markets
̶
Platform for earnings growth
 Strong and liquid balance sheet
̶
Flexibility for organic growth, acquisitions and share repurchases
 History of consistent cash generation
̶
4
Cash flow ± net income
STIFEL 2017 INDUSTRIALS CONFERENCE
06.15.17
Leading Market Position Across all Businesses
EMCOR GROUP, INC.
2016 Revenue: $7.6B
CONSTRUCTION
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SERVICES
U.S.
MECHANICAL
CONSTRUCTION
U.S.
ELECTRICAL
CONSTRUCTION
U.S.
BUILDING
SERVICES
U.S.
INDUSTRIAL
SERVICES
EMCOR UK
2016 Rev: $2.7B
2016 Rev: $1.7B
2016 Rev: $1.8B
2016 Rev: $1.1B
2016 Rev: $0.3B
STIFEL 2017 INDUSTRIALS CONFERENCE
CONSTRUCTION – U.S. Leading Specialty Construction
Contractor
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
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Sheet Metal
HVAC
Process Piping
Fire Protection
High Purity Piping
Plumbing






Low Voltage
Voice & Data
Lighting
Security / Alarm
Transmission & Distribution
High Voltage
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STIFEL 2017 INDUSTRIALS CONFERENCE
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BUILDING SERVICES – U.S. Leading National Provider of
Building Services
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National HVAC Services
Building Control Systems
Retrofit Projects
Repair Services
Service Agreements





Operations & Maintenance
HVAC Services
Retrofit Projects
Preventative Maintenance
Energy Efficiency Upgrades





Base Operations
Facilities Management
IDIQ Projects
Operations & Maintenance
Supplier Management
STIFEL 2017 INDUSTRIALS CONFERENCE
06.15.17
U.S. Industrial Services
Leading Provider of Refinery / Petrochemical Turnaround
Services
 Heat Exchanger Service /
Fabrication
 Embedded Contracts
 Turnaround Services
̶
̶
̶
Heat Exchangers, including HF
Alky Units
Fluid Catalytic Cracking Units
Coking Units
 Specialized Welding
 Field Services
 Maintenance Capital Projects
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STIFEL 2017 INDUSTRIALS CONFERENCE
Balanced Revenue Distribution
Source
14%
Geography
4%
34%
31%
96%
21%
New Construction
($ Millions)
($ Millions)
2016 Revenues
2016 Revenues
$2,524
Retrofit & Renovating
1,586
Building Services (Incl. UK)
2,375
Industrial Services
1,067
$7,552
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United States
U.K.
$7,226
326
$7,552
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STIFEL 2017 INDUSTRIALS CONFERENCE
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Service Revenue is Growing as a Percent of Total
($ Millions)
Revenue
$9,000
~$7,600
-
$7,552 ~$7,500
$7,500
 2016 service revenue
$3.4 billion or 45%
$6,719
$6,195 $6,334 $6,425
$6,000
$5,450
 Recurring service
$4,698
revenue base under
more cyclical
construction business
$4,500
$3,000
45%
45%
2012
2013
48%
49%
45%
45%
42%
$1,500
$0
2010
2011
Services
Service
10
2014
2015
Construction
Construction
2016
2017E
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Backlog by Market Sector
($ Millions)
$3,771
$4,000
$4,000
$3,903
$3,974
$3,634
$3,224
$3,302
$3,344
$2,953
$3,000
$3,000
$2,000
$2,000
$1,000
$1,000
$0
$0
2010
2010
Commercial
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2011
2011
Commercial
Hospitality / Gaming
Institutional
2012
2012
2013
2013
Hospitality Healthcare
Transportation
Industrial
2014
2014
2015
2015
Industrial
Institutional
Transportation
Water & Wastewater
2016
2016
2017 2017 –
Qtr. 1
Qtr. 1
Healthcare
Water & Wastewater
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STIFEL 2017 INDUSTRIALS CONFERENCE
Backlog by Segment
($ Millions)
$3,903
$3,771
$3,974
$3,634
$4,000
$4,000
$3,224
$3,302
$3,344
$2,953
$3,000
$3,000
$2,000
$2,000
$1,000
$1,000
$0
$0
2010
2011
2010
2011
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017 2017 –
Qtr. 1
Qtr. 1
Mechanical
Electrical
US Building Services
US Industrial Services
EMCOR UK
Mechanical
Electrical
Building
Services
Industrial Services
EMCOR UK
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STIFEL 2017 INDUSTRIALS CONFERENCE
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Key Financial Data – Income Statement
($ Thousands, except per share information) (Unaudited)
For the Three Months Ended
March 31,
2017
2016
$ 1,891,732
$ 1,744,970
Gross Profit
266,340
Selling, General and Administrative Expenses
Restructuring Expenses
183,001
565
Revenues
Operating Income
$
82,774
$
4.4%
Diluted Earnings per Common Share from
Continuing Operations
Variance
$
146,762
8.4%
223,108
43,232
19.4%
167,402
91
15,599
474
9.3%
N/M
$
27,159
48.8%
55,615
$
%
3.2%
$
0.88
$
0.56
$
0.32
57.1%
$
82,774
$
56,696
$
26,078
46.0%
$
0.31
54.4%
Non-GAAP Operating Income Excluding:
- Transaction Expenses in the 2016 Quarter
Related to the Acquisition of Ardent
4.4%
3.2%
Non-GAAP Diluted Earnings per Common Share
from Continuing Operations Excluding:
- Transaction Expenses in the 2016 Quarter
Related to the Acquisition of Ardent
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$
0.88
$
0.57
STIFEL 2017 INDUSTRIALS CONFERENCE
Key Financial Data – Balance Sheet
($ Thousands)
(Unaudited)
03/31/17
Cash
$
302,754
$
464,617
Working Capital
$
568,932
$
657,341
Goodwill
$ 1,010,399
$
979,628
Identifiable Intangible Assets, Net
$
521,417
$
487,398
Total Debt
$
420,694
$
423,326
Stockholders' Equity
$ 1,534,141
Total Debt / Total Capitalization
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12/31/16
21.5%
$ 1,537,942
21.6%
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STIFEL 2017 INDUSTRIALS CONFERENCE
06.15.17
2017 Outlook
 Non-residential construction market expected to grow
mid-single digits
 Backlog growth positive for Domestic Construction
 Building Services will benefit from continued growth in
retrofit and energy savings projects
 Industrial Services:
‒ Solid Spring turnaround season
‒ Continued headwinds in “new build” heat exchanger fabrication
 Strong and liquid balance sheet
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STIFEL 2017 INDUSTRIALS CONFERENCE
2017 Guidance
Revenues
Diluted EPS from
Continuing Operations
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$7.5 Billion ̶ $7.6 Billion
$3.20 ̶ $3.50
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