EMCOR Group, Inc.

Good morning. My name is Chuck, and I'll be your conference operator today. At this time, I would like to welcome everyone to the NCORP Group third quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press the pound key. I would now like to turn the call over to Mr. Andy Backman, Vice President of Investor Relations. Mr. Backman, you may begin.

Thank you, Chuck, and good morning, everyone, and welcome to MCOR's third quarter 2024 earnings conference call. For those of you joining us by webcast, we are at the beginning of our slide presentation that will accompany our results today. The presentation will be archived in the Investor Relations section of our website at MCORgroup.com. With me today are Tony Guzzi, our Chairman, President, and Chief Executive Officer, and Jason Albandian, Senior Vice President and MCOR's Chief Financial Officer, and Maxine Mauricio, Executive Vice President, Chief Administrative Officer, and General Counsel. For today's call, Tony will provide comments on our third quarter. Jason will then review the third quarter numbers before turning it back to Tony to discuss RPOs, as well as reviewing our revised 2024 guidance before we open it up for Q&A. Before we begin, as a reminder, this presentation and discussion contains certain forward-looking statements and contains certain non-GAAP financial information. Slide 2 of our presentation describes in detail these forward-looking statements and the non-GAAP financial information disclosures. I encourage everyone to review both disclosures in conjunction with our discussion and accompanying slides. And finally, as a reminder, all financial information discussed during this morning's call is included in our consolidated financial statements within both our earnings press release issued this morning and in our Form 10Q report. followed with the Securities and Exchange Commission. And with that, let me turn the call over to Tony. Tony?

Yeah, thanks much, Andy. And I'll be speaking mainly just page four of this opening. In the third quarter of 2024, our team continued to perform exceptionally well and delivered another great quarter. When you compare it to the third quarter of 2023, we had record revenues of $3.7 billion, which represents growth of 15.3% revenue growth. We had record operating income of $363.5 million, which was a 54.7% increase, and we more than doubled our operating cash flow to $526 million. Our RPOs grew to a record $9.8 billion in a quarter, up $1.15 billion, or 13.4% from the prior year quarter, and we earned diluted earnings per share of 580, compared to $3.57 for the third quarter of 2023. Our electrical and mechanical construction segments continued their impressive performance, with a combined third quarter operating margin of 13.3%. And individual operating margins of 14.1% and 12.9% respectively. How this happens is through excellent field leadership. They continue to drive this outstanding execution through relentless attention to detail and constant innovation across the project lifecycle. That begins with project and customer selection, estimating, contract structure and negotiation, Significant use of VDC, which is virtual design construct. We used to talk about it as BIM. Now we talk about it as a more holistic approach with virtual design construct, which leads to pre-fabrication, labor planning and training, commissioning, and finally, all the way through the diligent collection of receivables. Our teams then incorporate these learnings into the next opportunity to make them even more successful and productive for our customers. we do have a continuous improvement in learning culture here at MCOR. And when you couple that great execution with a strong mix of work that includes data centers, semiconductor plants, other high-tech and traditional manufacturing, institutional water and wastewater, water and good aftermarket service and project opportunities, including in the commercial sector, then our impressive performance is the end result. We are executing this diverse work and expanding into these resilient sectors with our growth over the last five years occurring through a combination of greenfield expansion, robust training once we do the greenfield expansions, and complementary acquisitions. We do have some of the best leadership at the segment and subsidiary levels, and they work together to share best practices and drive results across our mechanical and electrical trades. The result is this exceptional outcome for our customers, and as a result of that, strong performance for our shareholders. Our building services segment continues to perform as we expected it to perform this year, with very strong mechanical services performance and an overall operating margin of 7%, despite the previously discussed lost contracts in our site-based businesses. During the third quarter of 2024, our mechanical services business benefited from strong performance across its whole product line and portfolio work, including service maintenance agreements, repair services, HVAC retrofits, and building controls upgrades. Our industrial services segment continues to experience a gradual resumption of normal demand, and we are performing well both in the field and shops, and we are executing a normal fall turnaround season. Our UK business also continues to perform well in a difficult market. We are winning new work, and are poised to secure additional opportunities with customers that demand a strong technical solution for their facility services. At $9.8 billion, we have a strong base of RPOs to execute, and we have a balance sheet that will enable us to continue to compete, win, and grow in the future. With all that said, I think we can all agree it was a great quarter, exceptional performance by our team. And with that, Jason, I will turn the call over to you, and you will provide more detail on our quarterly results.