EM

EMCOR Group, Inc. stock research

Jun 30, 2023

FY2023 Q2

EMCOR Group (EME) Gross Margin — Quarter Ended Jun 30, 2023

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved in both comparisons, reflecting a higher proportion of revenue retained after cost of revenue.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved in both comparisons, reflecting a higher proportion of revenue retained after cost of revenue.

  • The gross margin improved, with revenue increasing more than cost of revenue when compared to both the prior quarter and the year-ago quarter.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter last year, all metrics were higher and gross margin also improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

16.1%

Gross profit

$490.1M

Revenue

$3.0B

Cost of revenue

$2.6B

Quarter-over-quarter change

+1.0 pts

Year-over-year change

+1.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.9B$436.1M$2.5B15.1%
Jun 30, 2023$3.0B$490.1M$2.6B16.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+1.0 pts

Year-over-year change

Jun 30, 2022

+1.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved, with revenue increasing more than cost of revenue when compared to both the prior quarter and the year-ago quarter.

Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter last year, all metrics were higher and gross margin also improved.

Monitor supply chain and material cost trends, as noted in the filing's risk factors, which could affect future cost of revenue.