01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group, Inc. reported a strong third quarter and nine-month period ending September 30, 2026, with significant year-over-year growth in revenues and operating income.
Revenues for the quarter reached a record $5.54 billiona, up 28.8% from the prior year, driven by broad-based demand across its market sectors and contributions from recent acquisitions. The company's operating income also set a new record for a third quarter at $545.8 million, an increase of 34.5% year-over-year, with operating margin improving to 9.8% from 9.4% in the prior year. This performance was bolstered by increased gross profit margins and improved SG&A leverage.
For the nine-month period, revenues increased by 22.9% to $15.32 billionb, and operating income grew by 31.3% to $1.50 billion, with operating margin expanding to 9.8% from 9.1%. Net income for the quarter and nine months saw substantial increases, reflecting the strong operational performance. The company also ended the period with a record backlog of remaining performance obligations at $18.57 billion, indicating robust future revenue potential.
Acquisitions played a significant role in growth, contributing substantially to revenues and backlog, while share repurchases continued to support earnings per share. Despite a $34.0 millionc impairment charge on identifiable intangible assets in the building services segment, the overall financial health appears strong. EMCOR's balance sheet remains solid, with significant cash and cash equivalents, and ample capacity under its revolving credit facility, positioning the company well for continued growth and operational execution.
02—Key points
Key Highlights
- Record quarterly revenues of $5.54 billion, up 28.8% year-over-year, driven by broad market demand and acquisitions.
- Operating income for the quarter reached a record $545.8 million, up 34.5% year-over-year, with operating margin improving to 9.8%.
- Nine-month revenues grew 22.9% to $15.32 billion, with operating income up 31.3% to $1.50 billion.
- Net income significantly increased for both the quarter and nine-month periods, reflecting strong operational execution.
- Remaining performance obligations (backlog) reached a record $18.57 billion, signaling strong future revenue potential.
- Significant contributions from acquisitions, with nine companies acquired in the first nine months of 2026 for $809.9 million, and the large Miller Electric acquisition in February 2025.
- A $34.0 million non-cash impairment charge was recognized on identifiable intangible assets in the U.S. building services segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, EMCOR Group kept $0.07.
- Revenue$5.54B100.0%
- Cost of revenue−$4.43B80.0%
- Gross profit$1.11B20.0%
- Operating costs−$562.4M10.1%
- Operating income$545.8M9.8%
- Interest, other & tax−$145.9M2.6%
- Net income$399.9M7.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $5.54B$4.30B | +28.8% |
| Cost of Revenue | $4.43B$3.47B | +27.9% |
| Gross Profit | $1.11B$835.31M | +32.7% |
| SG&A Expenses | $528.43M$429.62M | +23.0% |
| Operating Income | $545.79M$405.70M | +34.5% |
| Net Income | $399.93M$295.37M | +35.4% |
| EPS (Basic) | $9.06$6.59 | +37.5% |
| EPS (Diluted) | $9.04$6.57 | +37.6% |
| Shares Outstanding (Basic) | 44.12M44.79M | −1.5% |
| Shares Outstanding (Diluted) | 44.25M44.97M | −1.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of EMCOR's revenue growth in the third quarter of 2026?
EMCOR's revenue growth was driven by a combination of broad-based demand across most of its market sectors and the significant contributions from recent acquisitions. Revenues increased by 28.8% year-over-year to a record $5.54 billion.
How did recent acquisitions impact EMCOR's financial performance?
Acquisitions have played a substantial role in EMCOR's growth. In the first nine months of 2026, nine companies were acquired for $809.9 million, contributing $716.6 million to revenues. The significant acquisition of Miller Electric in February 2025 also continues to contribute to the company's performance. These acquisitions have also bolstered the company's remaining performance obligations (backlog).
What is the significance of the $18.57 billion in remaining performance obligations?
The record $18.57 billion in remaining performance obligations as of September 30, 2026 represents the total value of work yet to be completed under existing contracts. This figure indicates a strong pipeline of future revenue and provides visibility into the company's near-to-medium term business outlook.
Were there any significant charges or impairments affecting profitability?
Yes, EMCOR recognized a $34.0 million non-cash impairment charge related to certain identifiable intangible assets within its United States building services segment during the third quarter of 2026. Despite this charge, the company's operating income and net income showed substantial year-over-year growth.
06—Continue