01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group, Inc. (EME) reported a strong third quarter for fiscal year 2025, with revenues reaching a record $4.30 billiona, an increase of 16.4% year-over-year, driven by robust demand across its service sectors and significant contributions from recent acquisitions.
Operating income also saw a healthy increase to $405.7 millionb, although operating margin slightly compressed to 9.4% from 9.8% in the prior year's quarter, primarily due to factors in the electrical construction segment and amortization from acquisitions. Net income rose to $295.4 million, or $6.57 per diluted share, up from $270.3 million, or $5.80 per diluted share, in the same period last year. The company highlighted strong performance in its United States construction segments, particularly in network and communications driven by data center demand.
EMCOR also continues to execute its strategic growth initiatives through acquisitions, with the significant acquisition of Miller Electric bolstering its electrical construction capabilities. The company's backlog of remaining performance obligations stands strong at $12.61 billionc, providing good visibility into future revenue.
02—Key points
Key Highlights
- Record third-quarter revenues of $4.30 billion, up 16.4% year-over-year, fueled by strong demand and acquisitions.
- Operating income increased to $405.7 million, though operating margin slightly decreased to 9.4%.
- Net income grew to $295.4 million, translating to $6.57 in diluted earnings per share, an increase from $5.80 in the prior year.
- The United States electrical construction segment saw substantial revenue growth, largely driven by data center projects.
- EMCOR completed the significant acquisition of Miller Electric in Q1 2025, contributing substantially to revenue growth.
- Total remaining performance obligations increased to $12.61 billion as of September 30, 2025, indicating strong future revenue potential.
- The company repurchased approximately $423.3 million of its common stock during the first nine months of 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, EMCOR Group kept $0.07.
- Revenue$4.30B100.0%
- Cost of revenue−$3.47B80.6%
- Gross profit$835.3M19.4%
- Operating costs−$429.6M10.0%
- Operating income$405.7M9.4%
- Interest, other & tax−$110.3M2.6%
- Net income$295.4M6.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.30B$3.70B | +16.4% |
| Cost of Revenue | $3.47B$2.96B | +17.0% |
| Gross Profit | $835.31M$734.73M | +13.7% |
| SG&A Expenses | $429.62M$371.19M | +15.7% |
| Operating Income | $405.70M$363.54M | +11.6% |
| Net Income | $295.37M$270.26M | +9.3% |
| EPS (Basic) | $6.59$5.83 | +13.0% |
| EPS (Diluted) | $6.57$5.80 | +13.3% |
| Shares Outstanding (Basic) | 44.79M46.39M | −3.4% |
| Shares Outstanding (Diluted) | 44.97M46.59M | −3.5% |
05—Questions
Frequently Asked Questions
What were the main drivers of EMCOR's revenue growth in Q3 2025?
EMCOR's revenue growth was driven by strong demand for its services across most market sectors, particularly in its United States construction segments. The network and communications market sector, boosted by data center construction projects, was a significant contributor. Recent acquisitions, notably Miller Electric, also played a crucial role in the revenue increase.
Why did EMCOR's operating margin slightly decrease despite revenue and operating income growth?
The slight decrease in operating margin from 9.8% to 9.4% was primarily attributed to a lower operating margin in the United States electrical construction and facilities services segment. This was due to factors such as lower profitability on certain projects in new geographies experiencing labor challenges and the impact of amortization expense from identifiable intangible assets acquired in the Miller Electric acquisition.
What is the significance of the large increase in remaining performance obligations?
The significant increase in remaining performance obligations to $12.61 billion indicates a robust and growing backlog of contracted work. This provides strong visibility into future revenue streams and suggests continued demand for EMCOR's services across its various segments, particularly in network and communications, and water and wastewater projects.
How has the acquisition strategy impacted EMCOR's financial performance?
EMCOR's acquisition strategy, highlighted by the significant acquisition of Miller Electric in Q1 2025 and five other companies during the first nine months, has been a key driver of revenue growth. These acquisitions have expanded the company's capabilities and geographic reach, contributing substantially to the top line. However, they also introduced amortization expenses that have slightly compressed operating margins in certain segments.
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