Profits rose the fastest during 2023 at two of construction’s largest specialty contracting firms, EMCOR Group and Comfort Systems USA. Both companies released fourth-quarter and year-end results and discussed them with investment analysts on conference calls in late February.
Norwalk, Conn.-based EMCOR (NYSE-EME) reported fourth-quarter and year-end net income of $211.5 million and $633 million, compared with $126 million and $406 million by 2022.
Revenues for the quarter and for the year reached $3.3 billion and $12.5 billion, compared to $2.9 billion and $11 billion a year ago.
Anthony Guzzi, chairman and CEO of EMCOR, noted on the Feb. 28 call that the company’s electrical and mechanical operating margins were 8.3% and 10.5%, respectively. “The conversion of revenue to operating income by these segments has exceeded our expectations and is truly the result of excellent execution, adaptability, smart project selection and favorable contract terms,” he said .
Houston-based Comfort Systems (NYSE-FIX) reported fourth-quarter and year-end net income of $91.6 million and $323.4 million, compared with $55.4 million and $245.9 million in 2022.
Revenue for the quarter and for the year reached $1.36 billion and $5.21 billion, compared to $1.11 billion and $4.14 billion a year ago.
Three out of every four labor dollars at Comfort Systems comes from mechanical construction, repair or maintenance. The rest is work related to electricity.
Chief Executive Officer Brian E. Lane told investment analysts on February 23 that the company’s revenue mix continues to be “leaning towards” data centers, life sciences projects, chip manufacturing and plants of batteries
“These industrial customers accounted for 55% of total revenue in 2023 and are the main drivers of [the company’s] pipeline and backlog,” he said.
“The commercial sector is still active,” he added, “but now it’s a small part of our business, around 19% of revenue.” Customers in the commercial market, on the other hand, provide the majority of Comfort Systems’ service revenue.
