10-QPeriod: Q3 FY2025

EMCOR Group, Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:EME

Summary

EMCOR Group, Inc. (EME) reported a strong third quarter for fiscal year 2025, with revenues reaching a record $4.30 billion, 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 million, 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 billion, providing good visibility into future revenue.

Financial Highlights

45 data points
Beta

Revenue

$4.30B

19.4% Gross Margin

Net Income

$295.37M

6.9% Net Margin

EPS (Diluted)

$6.57

Total Assets

$8.64B

Cash & Equivalents

$655.10M

Free Cash Flow

$475.50M

Financial Statements
Beta
Revenue$4.30B
Cost of Revenue$3.47B
Gross Profit$835.31M
SG&A Expenses$429.62M
Operating Income$405.70M
Net Income$295.37M
EPS (Basic)$6.59
EPS (Diluted)$6.57
Shares Outstanding (Basic)44.79M
Shares Outstanding (Diluted)44.97M

Key Highlights

  • 1Record third-quarter revenues of $4.30 billion, up 16.4% year-over-year, fueled by strong demand and acquisitions.
  • 2Operating income increased to $405.7 million, though operating margin slightly decreased to 9.4%.
  • 3Net income grew to $295.4 million, translating to $6.57 in diluted earnings per share, an increase from $5.80 in the prior year.
  • 4The United States electrical construction segment saw substantial revenue growth, largely driven by data center projects.
  • 5EMCOR completed the significant acquisition of Miller Electric in Q1 2025, contributing substantially to revenue growth.
  • 6Total remaining performance obligations increased to $12.61 billion as of September 30, 2025, indicating strong future revenue potential.
  • 7The company repurchased approximately $423.3 million of its common stock during the first nine months of 2025.

Frequently Asked Questions

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.

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.

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.

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.