01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group, Inc. reported a strong first quarter of 2025, with revenues reaching a new quarterly record of $3.87 billiona, an increase of 12.7% year-over-year.
This growth was driven by robust demand across most market sectors, particularly within the United States construction segments, and was further bolstered by recent acquisitions, notably Miller Electric. Profitability also saw significant improvement, with operating income reaching $318.8 millionb (8.2% of revenues), up from $260.0 million (7.6% of revenues) in the prior year. This expansion in operating margin reflects improved performance, favorable revenue mix, and enhanced project execution.
Diluted earnings per share also rose to $5.26c, benefiting from operational improvements and a reduced share count due to ongoing share repurchases. The company's robust backlog of $11.75 billion provides a solid foundation for future revenue and earnings.
02—Key points
Key Highlights
- Record quarterly revenues of $3.87 billion, up 12.7% year-over-year, driven by strong demand and acquisitions.
- Operating income increased to $318.8 million, with operating margin expanding to 8.2% from 7.6% in the prior year, indicating improved profitability.
- Diluted EPS rose to $5.26, benefiting from operational performance and share repurchases.
- Significant acquisition of Miller Electric completed in Q1 2025, contributing $183.1 million in revenue and $12.7 million in operating income.
- Total remaining performance obligations (backlog) grew to $11.75 billion, providing strong visibility into future revenues.
- Strong performance in United States electrical and mechanical construction segments, with increased revenues and improved operating margins.
- Share repurchase program continued, with approximately $218.7 million spent in the quarter, reducing share count and supporting EPS growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, EMCOR Group kept $0.06.
- Revenue$3.87B100.0%
- Cost of revenue−$3.14B81.3%
- Gross profit$722.7M18.7%
- Operating costs−$404.0M10.4%
- Operating income$318.8M8.2%
- Interest, other & tax−$78.1M2.0%
- Net income$240.7M6.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.87B$3.43B | +12.7% |
| Cost of Revenue | $3.14B$2.84B | +10.6% |
| Gross Profit | $722.72M$589.31M | +22.6% |
| SG&A Expenses | $403.96M$329.36M | +22.7% |
| Operating Income | $318.76M$259.95M | +22.6% |
| Net Income | $240.68M$197.15M | +22.1% |
| EPS (Basic) | $5.27$4.18 | +26.1% |
| EPS (Diluted) | $5.26$4.17 | +26.1% |
| Shares Outstanding (Basic) | 45.63M47.14M | −3.2% |
| Shares Outstanding (Diluted) | 45.78M47.32M | −3.2% |
05—Questions
Frequently Asked Questions
What were the key drivers of EMCOR's revenue growth in Q1 2025?
EMCOR's revenue growth of 12.7% to a record $3.87 billion in Q1 2025 was primarily driven by strong demand across its various market sectors, especially in its United States construction segments. The acquisition of Miller Electric, which contributed $183.1 million in revenue, also played a significant role. Growth was particularly strong in the network and communications (data centers), healthcare, and transportation sectors.
How did EMCOR's profitability change compared to the previous year?
Profitability improved significantly in Q1 2025. Operating income rose by $58.8 million to $318.8 million, and the operating margin expanded to 8.2% from 7.6% in Q1 2024. This improvement is attributed to better project execution, a more favorable mix of work, and enhanced productivity, particularly in the construction segments. Diluted EPS also increased to $5.26.
What is the significance of the remaining performance obligations (backlog) for EMCOR?
EMCOR's remaining performance obligations, or backlog, stood at $11.75 billion as of March 31, 2025, an increase from both the prior quarter and year. This substantial backlog provides strong visibility into future revenue streams and indicates continued demand for EMCOR's services across its various segments, with particular strength in electrical and mechanical construction.
How are acquisitions impacting EMCOR's financial performance?
Acquisitions are a key growth driver for EMCOR. The acquisition of Miller Electric in Q1 2025 was substantial, contributing significant revenue and operating income. In total, acquisitions added approximately $250.9 million in revenue in Q1 2025. The company continues to integrate acquired businesses effectively, complementing its existing capabilities and expanding its geographic reach.
06—Continue