01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group, Inc. (EME) reported a strong first quarter for 2026, demonstrating significant revenue growth and improved profitability.
Revenues surged by 19.7% year-over-year to $4.63 billiona, driven by broad-based demand across its service segments, particularly in electrical and mechanical construction, supported by strong performance in data center construction and institutional projects. This robust revenue increase, coupled with effective cost management, led to a record operating income of $403.8 million, representing an 8.7% margin, up from 8.2% in the prior year period. Diluted earnings per share also saw a substantial increase, reflecting the operational improvements and a reduced share count from ongoing share repurchase programs.
The company's substantial backlog of remaining performance obligations, which reached a record $15.62 billionb, indicates strong future revenue potential. Acquisitions continued to contribute to growth, with recent additions bolstering capabilities in key markets. Despite a decrease in cash and cash equivalents due to increased accounts receivable and strategic investments, EMCOR maintains a strong liquidity position with ample availability under its credit facility, positioning it well to fund future growth and return value to shareholders.
02—Key points
Key Highlights
- Consolidated revenues reached a quarterly record of $4.63 billion, a 19.7% increase year-over-year, driven by strong demand across market sectors.
- Operating income increased by 26.7% to $403.8 million, with the operating margin improving to 8.7% from 8.2% in the prior year quarter.
- Diluted earnings per share rose to $6.84 from $5.26, benefiting from increased operating income and a lower weighted average share count.
- Remaining performance obligations reached a record $15.62 billion, signaling robust future revenue potential.
- The company successfully integrated recent acquisitions, which contributed $234.1 million in incremental revenues.
- Cash and cash equivalents decreased to $916.4 million due to an increase in accounts receivable associated with revenue growth.
- EMCOR continues to return capital to shareholders through a $0.40 quarterly dividend and ongoing share repurchases.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, EMCOR Group kept $0.07.
- Revenue$4.63B100.0%
- Cost of revenue−$3.76B81.3%
- Gross profit$864.0M18.7%
- Operating costs−$460.1M9.9%
- Operating income$403.8M8.7%
- Interest, other & tax−$98.4M2.1%
- Net income$305.5M6.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.63B$3.87B | +19.7% |
| Cost of Revenue | $3.76B$3.14B | +19.7% |
| Gross Profit | $863.95M$722.72M | +19.5% |
| SG&A Expenses | $460.11M$403.96M | +13.9% |
| Operating Income | $403.85M$318.76M | +26.7% |
| Net Income | $305.48M$240.68M | +26.9% |
| EPS (Basic) | $6.85$5.27 | +30.0% |
| EPS (Diluted) | $6.84$5.26 | +30.0% |
| Shares Outstanding (Basic) | 44.56M45.63M | −2.3% |
| Shares Outstanding (Diluted) | 44.69M45.78M | −2.4% |
05—Questions
Frequently Asked Questions
What was the primary driver of EMCOR's revenue growth in the first quarter of 2026?
The primary driver of EMCOR's revenue growth was broad-based demand across its service segments, particularly in electrical and mechanical construction. Strong demand for data center construction projects and growth in institutional projects were significant contributors. The company also benefited from incremental contributions from recent acquisitions.
How did EMCOR manage its expenses in the current quarter?
EMCOR demonstrated effective expense management. While selling, general, and administrative expenses increased in absolute terms due to acquisitions and higher incentive compensation, they decreased as a percentage of revenue (SG&A margin) to 9.9% from 10.4% in the prior year. This was achieved by leveraging its overhead structure during a period of significant revenue growth and benefiting from lower professional fees compared to the prior year's acquisition-related costs.
What is the significance of EMCOR's large and growing backlog of remaining performance obligations?
The record $15.62 billion in remaining performance obligations indicates strong visibility into future revenue. This substantial backlog, driven by new contract awards in its construction segments, suggests continued demand for EMCOR's services and provides a solid foundation for future financial performance. It reflects the company's ability to secure significant new projects.
How does EMCOR manage its liquidity, and what is its current financial position?
EMCOR maintains a strong liquidity position. Despite a decrease in cash and cash equivalents to $916.4 million, largely due to increased accounts receivable from revenue growth, the company has $1.23 billion in available capacity under its $1.30 billion revolving credit facility. This, combined with cash generated from operations, is expected to meet its short-term and long-term liquidity requirements, supporting growth strategies and shareholder returns.
06—Continue