01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb, 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.
02—Key points
Key Highlights
- Record quarterly revenues of $4.30 billion, up 17.4% year-over-year, driven by broad-based demand and acquisitions.
- Record quarterly operating income of $415.2 million, with an improved operating margin of 9.6%.
- Significant increase in net income to $302.2 million and diluted EPS to $6.72, up from $247.6 million and $5.25, respectively.
- Growing backlog of remaining performance obligations reached $11.91 billion, signaling strong future revenue.
- Acquisitions, particularly Miller Electric, are contributing positively to revenue and operating income, with further integration expected.
- Strong performance in United States construction segments (electrical and mechanical) drove overall profitability improvements.
- Share repurchase program continues, with $432.2 million in repurchases during the first half of 2025, contributing to EPS growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, EMCOR Group kept $0.07.
- Revenue$4.30B100.0%
- Cost of revenue−$3.47B80.6%
- Gross profit$833.8M19.4%
- Operating costs−$418.6M9.7%
- Operating income$415.2M9.6%
- Interest, other & tax−$113.1M2.6%
- Net income$302.2M7.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $4.30B$3.67B | +17.4% |
| Cost of Revenue | $3.47B$2.98B | +16.4% |
| Gross Profit | $833.77M$684.00M | +21.9% |
| SG&A Expenses | $418.56M$351.19M | +19.2% |
| Operating Income | $415.21M$332.81M | +24.8% |
| Net Income | $302.16M$247.57M | +22.0% |
| EPS (Basic) | $6.74$5.27 | +27.9% |
| EPS (Diluted) | $6.72$5.25 | +28.0% |
| Shares Outstanding (Basic) | 44.83M46.97M | −4.6% |
| Shares Outstanding (Diluted) | 44.99M47.16M | −4.6% |
05—Questions
Frequently Asked Questions
How did EMCOR's recent acquisitions perform in the second quarter of 2025?
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.
What is driving the growth in EMCOR's revenue and profitability?
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.
How is EMCOR managing its liquidity and capital resources?
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.
What is the outlook for EMCOR's backlog?
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.
06—Continue