EMCOR Group, Inc.

Good morning. My name is Betsy, and I will be your conference operator today. At this time, I would like to welcome everyone to the MCOR Group fourth quarter and full year 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 star, then two. I would now like to turn the call over to Andy Backman, Vice President of Investor Relations. Mr. Backman, you may begin.

Thank you, Betsy, and good morning, everyone, and welcome to MCOR's fourth quarter and full year 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 remarks today. This presentation will be archived in the investor relations section of our website at mcorrgroup.com. With me today are Tony Guzzi, our Chairman, President, and Chief Executive Officer, 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 fourth quarter and the full year 2024. Jason will then review our fourth quarter and full year numbers. before turning it back to Tony to discuss our recent acquisition of Miller Electric Company, our RPOs, as well as reviewing our 2025 guidance before we open it up for Q&A. Before we begin, as a reminder, this presentation and discussion contain certain forward-looking statements and may contain 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 10-K filed with the Securities and Exchange Commission. And with that, let me turn the call over to Tony. Tony?

Yeah, thanks, Andy. And good morning and welcome to our fourth quarter 2024 earnings call. In my opening comments today, I will primarily highlight our performance in 2024. I'll discuss what went well and the challenges we face. I'll also provide some brief remarks on the quarter before turning it over to Jason, who's going to cover the quarter in detail. I'll then close by outlining our 2025 outlook and guidance. And for my initial comments, I'd ask you to turn to pages four and five. For the fourth quarter of 2024, we again had record performance on nearly every relevant financial metric, including diluted earnings per share of $6.32, operating income of $389 million, operating margin of 10.3%, operating cash flow of $469 million, and revenues of $3.77 billion, a 9.6% year-over-year increase. It was a great quarter, finishing an exceptional year. For 2024, we earned $14.6 billion in revenues, achieving year-over-year revenue growth of 15.8%. We had diluted earnings per share of $21.52, operating income of $1.3 billion, and we had an operating margin of 9.2%. We had operating cash flow of $1.4 billion. It was a terrific year with strong execution across our business, supported by well-timed, long-term investors that positioned us to serve growing, diverse, and technically sophisticated end markets. Our performance culture centered on mission-first people always enables us to attract, develop, retain, and reward an exceptional workforce, which in turn drives our strong performance for both our customers and our shareholders. So this morning, rather than providing a segment-by-segment recap of the year, what I thought I'd do is I'd provide an overview of what went well in 2024 and really what has gone well over the last three to five years, as well as some of the challenges we overcame to deliver an exceptional 2024. First, we operate in growing markets that offer long-term opportunities for success. However, to perform well in these markets, you must have the ability to attract, develop, and retain exceptionally skilled labor. You must exhibit excellence in project planning and development, virtual design and construction, and I'll refer to that as VDC. And BDC includes BIM, or Building Information Modeling, that then leads to prefabrication and then automation of some of our prefabrication operations. You also need to have experienced leaders down through the segment and subsidiary levels who can manage the performance of the work and earn and maintain the confidence of our customers, highlighting that we have the ability to efficiently execute projects under the most demanding conditions without compromising safety. As we have demonstrated again in 2024, and really over many years, our ability to perform well in growing markets like data centers, high-tech and traditional manufacturing, healthcare, energy retrofits, and water and wastewater projects, they provide us the opportunities to generate above-market growth. At MCOR, we pivot to sectors where growth and opportunity exist, and we deploy our skilled workforce and leadership teams to tackle the most difficult projects for customers who value our capabilities experience, and strong balance sheet. Further, we have a broad service offering and the trade depth to effectively execute that offering. Our extensive capabilities across the mechanical and electrical trades allow us to provide a more comprehensive scope and give us the desired scale for our customers. In the electrical trades, we can offer the full range of medium and low voltage solutions across geographies and markets and customers. Our mechanical capabilities span large, complex mechanical and piping systems in high-tech and traditional manufacturing, industrial, oil and gas, healthcare, and water and wastewater projects that often require superior VDC and prefabrication capabilities to ensure efficient, precise, and safe execution. Our mechanical capabilities extend to fire and life safety where we design, install, and service some of the most complex fire suppression and alarm systems. Beyond construction, our capabilities extend to the aftermarket, where we have the skills and scale to meet our customers' needs with HVAC and building control service and retrofit projects, as well as electrical retrofits, low voltage work, as well as the fire life safety service solutions mentioned above. And finally, we invest in the long term for our people, and we are disciplined capital allocators. At our core, we are a company that succeeds because of excellence in field leadership and skilled labor united by our MCOR values of mission first, people always. We have a comprehensive leadership development program from project managers and foremen to segment and corporate leadership. We train extensively across the skills that enable our success. We also have leading succession management as evidenced by the fact that 80% of our subsidiary and segment promotions are internal and well-planned. Our voluntary turnover rates at the subsidiary and segment leadership levels are near zero as we have a pay for performance culture and we work collectively as a team to achieve superior results for our customers. Our capital allocation model is balanced and effective, focused on building the business first through organic investment. For example, over the past three years, we have more than doubled our capital investment in the business with CapEx now in 2024 of 75 million. We have a very successful acquisition program and we return cash to our shareholders through dividends and share repurchases. In 2024, We completed seven acquisitions for approximately $230 million, and we returned $43 million in cash through dividends to our shareholders and $500 million to our shareholders through share repurchases. The Miller acquisition, which we discussed later in this presentation, closed on February 3rd, 2025, and is a great example of our capital and discipline in action. As we have said in the past, deals happen when they happen. And we are disciplined acquirers focused on building our overall business to better serve the demands of our customers through offering diverse services across markets and geographies. While 2024 was an exceptional year, we did have some challenges. These include ongoing supply chain issues. We finished some pre-COVID work that we have now finished that, you know, was not the greatest. And the intense competition we faced in our U.S. and U.K. site-based services business. Building and maintaining our skilled workforce is always a challenge. but our field leaders are best in class in labor planning, sourcing, training, and retention. We anticipate facing some macro and other potential challenges in 2025, but as we've done in the past, we will work to protect ourselves with extensive planning and, where appropriate, prefabrication and automation, coupled with the right contractual terms and structures. As contractors, it is in our DNA and training to adapt and improvise to achieve acceptable results. We exit 2024 with RPO growth of 14% year-over-year and aggregated RPOs of $10.1 billion, another record for the company. Miller added over $700 million in RPOs as of our February 3rd closing that is not in the $10.1 billion 2024 year-end number discussed above. Our balance sheet remains liquid and strong even after the $865 million acquisition of Miller. With that, Jason, I'll turn the discussion over to you. Thank you, Tony.