EMCOR Group, Inc. (NYSE:EME) Q1 2024 Earnings Call Transcript

Alex Dwyer: Thank you. That’s really helpful. So if I can just ask the next one. I guess like the Industrial Services outlook commentary, it seemed a lot more positive this quarter. Large turnarounds are coming through with the larger scopes, and you’re getting better overhead leverage on that. And then 1Q was the best performance since the pandemic. Like would you say there’s better visibility now into customer spending plans and turnarounds now? Or is it still kind of different?

Tony Guzzi: I’d say yes and no, right? Yes in that we have pretty good visibility in that we understand they’re going to do the work. But they could shift it from fourth quarter to first quarter or third quarter to fourth quarter. I would say that I had the privilege of seeing the kind of relationships our folks have firsthand recently at one of the biggest refining customers. And they’re at the top, and they’re deep. Why? Because we help that customer perform and solve problems. And ultimately, that’s what that business comes down to. You have to have the best technical resources. And the good news I take away from what I’ve seen recently in that business is there’s a little straining for manpower going on right now. And when that happens in the Gulf Coast, that’s usually a good thing. It means that there’s more activity going on. And when there’s more activity going on, that’s good for the larger contractors like us.

Alex Dwyer: Thank you. I’ll leave it there.

Tony Guzzi: Thank you.

Operator: Thank you very much. Mr. Guzzi, we have no further questions at this time. And I will turn it back to you for some closing comments, please.

Tony Guzzi: Look, we got off to a good start this year. It’s been a – we’ve been performing really well. I don’t think you can ever discount the skill it takes of our folks in the field. You heard me talk about it earlier. And someone asked me an interesting question today. Are these decisions being made top down at the segment level, subsidiary level? I’d say it’s a team sport. But at the end of the day, we’re only as good as our subsidiaries deliver on the projects that they commit to our customers. And with that, I’ll thank them, and see you all in a couple of months. Bye.

Andy Backman: Great. Thank you, Tony, and thank you, Jason, and thank you, Maxine, and to all of you for joining us today. If you should have any follow-up questions, please do not hesitate to reach out. Thank you all again, and have a great day. And Marlese, could you please close the call?

Operator: Yes. This conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect. Have a great rest of your day.