EM

EMCOR Group, Inc. stock research

Jun 30, 2024

FY2024 Q2

EMCOR Group (EME) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved, reflecting that gross profit grew at a faster pace than cost of revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved, reflecting that gross profit grew at a faster pace than cost of revenue.

  • The most observable driver of margin improvement was the increase in gross profit relative to revenue, which outpaced the growth in cost of revenue.
  • Compared to the immediately preceding quarter, gross margin was higher; versus the same quarter one year earlier, gross margin also showed an improvement.

Gross margin snapshot

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

Gross margin

18.7%

Gross profit

$684.0M

Revenue

$3.7B

Cost of revenue

$3.0B

Quarter-over-quarter change

+1.5 pts

Year-over-year change

+2.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$3.2B$545.5M$2.7B17.0%
Dec 31, 2023$3.4B$617.7M$2.8B18.0%
Mar 31, 2024$3.4B$589.3M$2.8B17.2%
Jun 30, 2024$3.7B$684.0M$3.0B18.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+1.5 pts

Year-over-year change

Jun 30, 2023

+2.6 pts

What the margin says

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

The most observable driver of margin improvement was the increase in gross profit relative to revenue, which outpaced the growth in cost of revenue.

Compared to the immediately preceding quarter, gross margin was higher; versus the same quarter one year earlier, gross margin also showed an improvement.

Monitor how the acquisition contribution to revenue, as noted in the filing, influences future gross margins.