10-QPeriod: Q2 FY2025

EMCOR Group, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:EME

Summary

EMCOR Group, Inc. reported robust financial results for the second quarter and the first half of 2025, demonstrating significant year-over-year growth in both revenue and profitability. Revenues surged by 17.4% to a record $4.30 billion for the quarter, driven by strong demand across most served market sectors and substantial contributions from recent acquisitions, most notably Miller Electric. Operating income also reached a new quarterly high of $415.2 million, expanding the operating margin to 9.6%, up from 9.1% in the prior year. This improvement was largely attributed to enhanced performance in the United States construction segments, benefiting from an improved revenue mix and strong project execution. Net income and diluted earnings per share saw substantial increases, reflecting the operational improvements and a reduced share count due to ongoing share repurchases. The company's backlog of remaining performance obligations grew significantly to $11.91 billion, indicating strong future revenue visibility. Despite increased borrowing under its revolving credit facility to fund strategic initiatives, EMCOR maintains a solid liquidity position, with ample available capacity and strong cash generation from operations expected to cover its future obligations.

Financial Highlights

46 data points
Beta

Revenue

$4.30B

19.4% Gross Margin

Net Income

$302.16M

7.0% Net Margin

EPS (Diluted)

$6.72

Total Assets

$8.40B

Cash & Equivalents

$485.99M

Free Cash Flow

$193.69M

Financial Statements
Beta
Revenue$4.30B
Cost of Revenue$3.47B
Gross Profit$833.77M
SG&A Expenses$418.56M
Operating Income$415.21M
Net Income$302.16M
EPS (Basic)$6.74
EPS (Diluted)$6.72
Shares Outstanding (Basic)44.83M
Shares Outstanding (Diluted)44.99M

Key Highlights

  • 1Record quarterly revenues of $4.30 billion, up 17.4% year-over-year, driven by broad-based demand and acquisitions.
  • 2Record quarterly operating income of $415.2 million, with an improved operating margin of 9.6%.
  • 3Significant increase in net income to $302.2 million and diluted EPS to $6.72, up from $247.6 million and $5.25, respectively.
  • 4Growing backlog of remaining performance obligations reached $11.91 billion, signaling strong future revenue.
  • 5Acquisitions, particularly Miller Electric, are contributing positively to revenue and operating income, with further integration expected.
  • 6Strong performance in United States construction segments (electrical and mechanical) drove overall profitability improvements.
  • 7Share repurchase program continues, with $432.2 million in repurchases during the first half of 2025, contributing to EPS growth.

Frequently Asked Questions

EMCOR's recent acquisitions, particularly the significant acquisition of Miller Electric in the first quarter of 2025, contributed approximately $330.3 million to revenues and $9.2 million to operating income (net of amortization) for the second quarter. The company reported that these acquisitions are integrating well and are expected to continue driving growth.

Revenue growth is primarily driven by strong demand across most market sectors, robust performance in the United States construction segments (electrical and mechanical), and contributions from recent acquisitions. Profitability is being boosted by an improved revenue mix, excellent project execution, enhanced productivity from technology investments, and favorable operating leverage from acquisitions.

EMCOR maintains a strong liquidity position with $486.0 million in cash and cash equivalents (excluding restricted cash) and $978.5 million in available capacity under its $1.30 billion revolving credit facility as of June 30, 2025. The company expects to meet its liquidity needs through operational cash flow, existing cash balances, and its credit facility. Investments are being funded through a combination of acquisitions, capital expenditures, debt, and shareholder returns.

EMCOR's remaining performance obligations (backlog) stood at approximately $11.91 billion as of June 30, 2025, an increase of about $1.81 billion since the end of 2024. This growth is attributed to new contract awards across all segments, notably in network and communications (data centers), institutional, manufacturing/industrial, commercial, and hospitality sectors, indicating a strong pipeline of future work.