10-QPeriod: Q1 FY2025

EMCOR Group, Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 30, 2025For Securities:EME

Summary

EMCOR Group, Inc. reported a strong first quarter of 2025, with revenues reaching a new quarterly record of $3.87 billion, 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 million (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 $5.26, 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.

Financial Highlights

48 data points
Beta

Revenue

$3.87B

18.7% Gross Margin

Net Income

$240.68M

6.2% Net Margin

EPS (Diluted)

$5.26

Total Assets

$8.08B

Cash & Equivalents

$576.70M

Free Cash Flow

$108.47M

Financial Statements
Beta
Revenue$3.87B
Cost of Revenue$3.14B
Gross Profit$722.72M
SG&A Expenses$403.96M
Operating Income$318.76M
Net Income$240.68M
EPS (Basic)$5.27
EPS (Diluted)$5.26
Shares Outstanding (Basic)45.63M
Shares Outstanding (Diluted)45.78M

Key Highlights

  • 1Record quarterly revenues of $3.87 billion, up 12.7% year-over-year, driven by strong demand and acquisitions.
  • 2Operating income increased to $318.8 million, with operating margin expanding to 8.2% from 7.6% in the prior year, indicating improved profitability.
  • 3Diluted EPS rose to $5.26, benefiting from operational performance and share repurchases.
  • 4Significant acquisition of Miller Electric completed in Q1 2025, contributing $183.1 million in revenue and $12.7 million in operating income.
  • 5Total remaining performance obligations (backlog) grew to $11.75 billion, providing strong visibility into future revenues.
  • 6Strong performance in United States electrical and mechanical construction segments, with increased revenues and improved operating margins.
  • 7Share repurchase program continued, with approximately $218.7 million spent in the quarter, reducing share count and supporting EPS growth.

Frequently Asked Questions

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.

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.

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.

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.