01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group, Inc. reported strong financial performance for the second quarter and first half of fiscal year 2026.
Revenues surged by approximately 20% year-over-year for the quarter, reaching a record $5.15 billiona. This growth was driven by broad-based demand across all reporting segments, particularly in the United States electrical and mechanical construction and facilities services divisions, fueled by strong activity in the network and communications sector, including data center construction. Profitability also saw significant improvement.
Operating income for the quarter increased by 32% to $547.3 millionb, with an improved operating margin of 10.6% compared to 9.6% in the prior year period. This was supported by a higher gross profit margin and a more efficient SG&A expense ratio.
Diluted earnings per share rose substantially to $9.06c from $6.72, reflecting both the operational performance and a reduced share count due to ongoing share repurchases. The company's backlog of remaining performance obligations also reached a record $17.14 billion, indicating a strong demand pipeline for future work.
02—Key points
Key Highlights
- Record quarterly revenues of $5.15 billion, up 19.8% year-over-year, driven by strong demand across all segments.
- Significant operating income growth of 32.1% to $547.3 million, with operating margin improving to 10.6% from 9.6%.
- Diluted EPS increased by 34.8% to $9.06, benefiting from operational improvements and share repurchases.
- United States Electrical and Mechanical Construction & Facilities Services segments show robust revenue and operating income growth, notably in the network/communications sector.
- Backlog of remaining performance obligations reached a record $17.14 billion, signaling strong future revenue potential.
- Acquisitions contributed $169.2 million in revenue during the quarter, integrating new businesses effectively.
- Cash and cash equivalents remain strong at $924.4 million, providing ample liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, EMCOR Group kept $0.08.
- Revenue$5.15B100.0%
- Cost of revenue−$4.13B80.2%
- Gross profit$1.02B19.8%
- Operating costs−$475.0M9.2%
- Operating income$547.3M10.6%
- Interest, other & tax−$143.6M2.8%
- Net income$403.7M7.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.15B$4.30B | +19.8% |
| Cost of Revenue | $4.13B$3.47B | +19.1% |
| Gross Profit | $1.02B$833.77M | +22.6% |
| SG&A Expenses | $475.04M$418.56M | +13.5% |
| Operating Income | $547.34M$415.21M | +31.8% |
| Net Income | $403.69M$302.16M | +33.6% |
| EPS (Basic) | $9.09$6.74 | +34.9% |
| EPS (Diluted) | $9.06$6.72 | +34.8% |
| Shares Outstanding (Basic) | 44.42M44.83M | −0.9% |
| Shares Outstanding (Diluted) | 44.55M44.99M | −1.0% |
05—Questions
Frequently Asked Questions
What were the primary drivers of EMCOR's revenue growth in the second quarter of 2026?
EMCOR's revenue growth was driven by broad-based demand across most market sectors served. Key contributors included strong performance in the United States electrical and mechanical construction and facilities services segments, particularly due to increased demand for data center construction within the network and communications market sector. Acquisitions also played a significant role, contributing $169.2 million in revenue for the quarter.
How has EMCOR's profitability improved year-over-year?
Profitability saw a substantial improvement due to a combination of factors. The company achieved a higher consolidated gross profit margin (19.8% vs. 19.4%) and reduced its selling, general, and administrative (SG&A) expenses as a percentage of revenue (9.2% vs. 9.7%). These operational efficiencies, along with the significant revenue increase, led to a 32.1% rise in operating income to $547.3 million and a 34.8% increase in diluted earnings per share to $9.06.
What is the significance of EMCOR's record backlog of remaining performance obligations?
The record backlog of $17.14 billion at June 30, 2026, indicates a strong pipeline of future work. This signifies sustained demand for EMCOR's services, particularly in the construction segments, and provides a high degree of visibility into future revenue streams, suggesting continued operational strength for the company.
How are acquisitions impacting EMCOR's financial results?
Acquisitions are positively impacting EMCOR's financial results by contributing to revenue growth and expanding service capabilities. For the second quarter of 2026, acquisitions contributed $169.2 million in revenue and $13.9 million in operating income, net of amortization. The company has integrated several new businesses in the first half of 2026, primarily in its mechanical and electrical construction segments, which are showing good performance.
06—Continue