EMCOR Group, Inc. stock research
FY2024 Q3
EMCOR Group (EME) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable compared to the prior quarter, while gross profit increased, resulting in an improved gross margin. Relative to the same quarter last year, both revenue and gross profit were higher, with gross profit growing faster than cost of revenue, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter, while gross profit increased, resulting in an improved gross margin. Relative to the same quarter last year, both revenue and gross profit were higher, with gross profit growing faster than cost of revenue, leading to a higher gross margin.
- The strongest observable margin driver is the expansion of gross margin, supported by a higher gross profit relative to revenue. The filing notes that revenue growth was driven by strong demand across most market sectors and included contributions from acquisitions.
- Gross margin improved both sequentially and year-over-year. Revenue was stable compared to the prior quarter and higher than the same quarter one year earlier, while gross profit increased from both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.9%
Gross profit
$734.7M
Revenue
$3.7B
Cost of revenue
$3.0B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+2.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $3.4B | $617.7M | $2.8B | 18.0% |
| Mar 31, 2024 | $3.4B | $589.3M | $2.8B | 17.2% |
| Jun 30, 2024 | $3.7B | $684.0M | $3.0B | 18.7% |
| Sep 30, 2024 | $3.7B | $734.7M | $3.0B | 19.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.2 pts
Year-over-year change
Sep 30, 2023
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the expansion of gross margin, supported by a higher gross profit relative to revenue. The filing notes that revenue growth was driven by strong demand across most market sectors and included contributions from acquisitions.
Gross margin improved both sequentially and year-over-year. Revenue was stable compared to the prior quarter and higher than the same quarter one year earlier, while gross profit increased from both periods.
Monitor the impact of supply chain disruptions and inflationary trends on material costs and labor availability, as cited in the filing's risk factors.