Long before Emcor Group Inc. acquired Miller Electric Co. for $865 million, Emcor CEO Tony Guzzi spent plenty of time getting to know the Jacksonville-based electrical contractor.
“We first started talking to each other almost six years ago, just to get to know each other because they’re a leader in our space, and we’re a leader in the space,” Guzzi said during Emcor’s quarterly conference call with analysts Feb. 26.
Guzzi said he liked what he saw from Miller CEO Henry Brown and the rest of the organization.
“They’ve always had this unbelievable reputation for professionalism, care for their employees and excellent execution for their customers and also disciplined capital allocators much like we are,” he said.
Guzzi said he sees no reason to make changes at Miller.
“I think when Henry and I talked about the acquisition, it was not an acquisition based on big changes in their operation because, quite frankly, they already look a lot like Emcor operation,” he said.
“They’re an IBEW leader and contractor, they run their company very much like a public company with the care and fiduciary responsibility of what a public company does,” he said.
Norwalk, Connecticut-based Emcor has about 100 operating companies providing a range of mechanical and electrical construction services, industrial and energy infrastructure and building services.
Besides Miller, it has two other Jacksonville-based subsidiaries: Harry Pepper & Associates, which provides mechanical, electrical and plumbing construction services for institutional and government organizations, and Certified Control Systems, which provides products for the building automation industry.
Emcor reported 2024 revenue of $14.6 billion.
Emcor said when it announced the Miller deal Jan. 14 it would provide more details as it reported earnings Feb. 26. It completed the acquisition of the 97-year-old company Feb. 3.
“It is really an acquisition that positions us to serve our customers better throughout the Southeast and also provide opportunity to expand opportunities for the team at Miller and grow the business substantially – it’s already grown substantially over the past five to 10 years, but to even grow more,” Guzzi said.
Chief Financial Officer Jason Nalbandian said Miller had estimated revenue of $805 million last year and remaining performance obligations of more than $700 million from contracts awarded as of Dec. 31.
“We anticipate that Miller will contribute meaningfully to our projected revenue growth in 2025, with approximately 35% to 50% of our growth coming from Miller’s contribution beginning in February of 2025,” Nalbandian said.
He also said Miller will provide about 10 to 15 cents of additional earnings per share this year.
Emcor is projecting total earnings per share of $22.25 to $24, up from $21.52 in 2024, and revenue of $16.1 billion to $16.9 billion.
Guzzi said Miller brings a diverse business mix to Emcor, with about 24% of its work in data centers, 23% in health care facilities and 15% in commercial buildings.
“They know how to do the hardest industrial work and also know how to put work in the sports and entertainment market, which is a growing part of the Florida market,” he said.
The company’s highest-profile customer is the Jacksonville Jaguars, with a naming rights deal to call the team’s training facility the Miller Electric Center.
“We expect a long and prosperous future. We’re excited that Henry and his team are going to be leading that business into the future,” Guzzi said.
“They will be based in Jacksonville, Florida, and we look to grow the Miller footprint from Jacksonville, Florida, throughout the Southeast through both organic growth and acquisition.”
Treace Medical Concepts Inc. increased revenue by 12% in 2024 but disappointed investors by falling short of its growth projections.
The Ponte Vedra-based company, which produces products for surgeons to treat bunions and other foot issues, is projecting more modest growth in 2025 but is hoping an expanded product mix will increase its market penetration.
In its Feb. 27 conference call, CEO John Treace said the company’s core products are used in about 25% of bunion procedures by its 3,100 surgeon customers.
However, Treace Medical has several new products in the pipeline to treat different classes of bunion issues.
“In offering these new specialized technologies targeting preferences of our surgeon customers and patients across all four bunion classes, we believe we are dialed in to maximize our share capture of the remaining 75% of their cases,” Treace said.
“We’re experiencing very positive early responses on these four new technologies from both existing and new Treace surgeon customers.”
Treace Medical reported 2024 revenue of $209.4 million and is projecting growth of 7% to 10% to between $224 million and $230 million in 2025.
Treace said growth could pick up in late 2025.
“We expect to ramp availability of these new offerings progressively through the first half of the year with increasing revenue impact expected in the back half as we build our supply and train more surgeons,” he said.
Treace Medical reported an adjusted net loss of $11 million before interest, taxes, depreciation and amortization in 2024 and is projecting to break even this year.
Dream Finders Homes Inc. reported strong growth in home sales last year and expects higher growth in 2025, helped in part by acquisitions.
The Jacksonville-based home builder reported fourth-quarter earnings rose 27% to $129 million, or $1.35 a share, with homebuilding revenue rising by 35% to $1.53 billion and home closings rising 40% to 3,008.
For all of 2024, revenue rose 18% to $4.4 billion and home closings rose 17% to 8,583.
“We ended on a high note — our fourth quarter was by far the best quarter of the year, and, arguably, the best in Company history,” CEO Patrick Zalupski said in a news release. Dream Finders does not hold quarterly conference calls to discuss its earnings.
Dream Finders said it expects 9,250 home closings in 2025, which include results from its Jan. 23 acquisition of Liberty Communities LLC, which expanded the company into the Atlanta market.
Dream Finders did not disclose terms when it announced that deal but said in its earnings release it paid $112 million in cash to buy the majority of Liberty’s homebuilding assets.
The assets from Liberty, which also has operations in Greenville, South Carolina, include more than 750 lots in various stages of construction and control of about 5,000 additional lots.
The St. Joe Co. reported a big gain in fourth quarter earnings as the Panama City Beach-based developer increased sales of home sites.
St. Joe, which develops residential, hospitality and commercial properties, said fourth-quarter revenue rose 20% to $104.3 million, with gains in all three segments.
However, home site sales, which had been lagging, jumped 82% to 331 and revenue from that segment rose 23% to $46.5 million.
For the full year, revenue rose just 3% to $402.7 million as a decline in homesite sales offset big gains in the hospitality and commercial segments.
“Our business strategy of developing operating properties that grow recurring revenue while simultaneously increasing the value of our surrounding lands continues to take shape,” CEO Jorge Gonzalez said in a Feb. 26 news release. St. Joe also does not hold quarterly conference calls.
Gonzalez said demand is strong from visitors and new residents coming to Northwest Florida.
St. Joe was a longtime conglomerate headquartered in Jacksonville before selling off its industrial properties to focus on developing its large land holdings in the Florida Panhandle.
It moved its headquarters to the Panhandle in 2010 to be closer to its development projects.
S&P Global Ratings said Feb. 25 it raised all of its ratings on Jacksonville-based Regency Centers Corp., including the issuer credit rating, from BBB-plus to A-minus.
“Regency Centers Corp. has continued demonstrating solid operating performance and financial metric strength, with support from its high quality, grocery-anchored portfolio and healthy retail fundamentals,” S&P said in a news release.
The credit rating agency also said its outlook for Regency is stable, reflecting “our expectation for healthy sector fundamentals to support continued solid operating performance. It also reflects our expectation for Regency to preserve its conservative balance sheet.”
“We very much appreciate S&P’s recognition of Regency’s commitment to operational excellence and financial discipline,” Regency CEO Lisa Palmer said in a news release.
“This accomplishment is a testament to our Company’s long track record of cash flow growth and balance sheet strength, creating value for stakeholders and providing stability through cycles.”
Private equity firm Rotunda Capital Partners announced Feb. 25 it acquired Jacksonville-based AirPro Diagnostics, which provides Advanced Driver Assistance System (ADAS) diagnostics, scanning, programming and calibration solutions for the automotive repair industry.
AirPro management will maintain an ownership stake in the company and Lonnie Margol, who founded AirPro in 2016, will serve as executive chairman.
AirPro President Josh McFarlin will continue leading day-to-day operations, Evanston, Illinois-based Rotunda said.
Rotunda officials said in a news release their investment will help AirPro enhance its capabilities and expand into new geographies and end markets.
“This transaction exemplifies Rotunda’s dedication to thematically investing in founder- and family-led high-growth industrial businesses,” Rotunda Managing Partner Dan Lipson said.
Terms of the deal were not announced.