EMCOR Group, Inc. stock research
FY2024 Q4
EMCOR Group (EME) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between gross profit and revenue.
- The improvement in gross margin was driven by gross profit increasing at a higher rate than revenue, as seen in the year-over-year comparison.
- Compared to the prior quarter, gross margin edged higher. Compared to the same quarter last year, gross margin showed a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.1%
Gross profit
$757.0M
Revenue
$3.8B
Cost of revenue
$3.0B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $3.8B | $757.0M | $3.0B | 20.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.2 pts
Year-over-year change
Dec 31, 2023
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit increasing at a higher rate than revenue, as seen in the year-over-year comparison.
Compared to the prior quarter, gross margin edged higher. Compared to the same quarter last year, gross margin showed a more pronounced improvement.
Monitor the company's working capital efficiency and cash conversion, as the filing emphasizes the importance of converting operating income into cash and the potential risks from macroeconomic conditions on receivables.