What drove EMCOR's revenue growth in the third quarter of 2025?

Revenue rose 16.4% to $4.30 billion. Acquisitions contributed about 8.3 percentage points, including Miller Electric, while organic growth was 8.1%. The U.S. electrical construction segment grew the most, with revenue up about 52% year-over-year to $1.29 billion.

Is the backlog large enough to support future growth?

Yes. Remaining performance obligations reached a record $12.61 billion, up nearly 29% year-over-year. That is roughly 1.8 times trailing annual revenue in the company's current run-rate, which supports near-term revenue visibility. However, RPOs are not guaranteed revenue, and the High-Tech Manufacturing backlog declined as semiconductor projects were completed.

Why did the full-year guidance change, and what is the impact of the U.K. sale?

Management raised the low end of the EPS range to $25.00 from $24.50 and narrowed revenue to $16.7–$16.8 billion. The guidance is adjusted for the anticipated fourth-quarter sale of the U.K. Building Services segment, which had $136 million of quarterly revenue. Non-GAAP figures exclude transaction costs and the expected gain on the sale, so the reported GAAP result may differ materially.

Why did cash fall so much in 2025?

Cash and equivalents dropped from $1.34 billion at year-end 2024 to $655 million at September 30, 2025. The main causes were about $900 million of acquisition payments, $432 million of share repurchases, and a $222 million working capital outflow, partly offset by $778 million of operating cash flow. Management still has an undrawn revolving credit facility to support liquidity.

Are there concerns about margins or segment performance?

Yes. Consolidated operating margin declined 40 basis points year-over-year to 9.4%, and the U.S. electrical segment margin fell to 11.3% from 14.1% as the business scaled rapidly. U.S. industrial services remains weak at a 2.2% margin. SG&A held at 10.0% of revenue, and acquisition-related amortization rose to $47.8 million from $34.5 million, adding to pressure on reported margins.

EME 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.

EMCOR Group (NYSE: EME) reported fiscal Q3 2025 results on October 30, 2025 that were strong on the top line and margins.

Revenue rose 16.4% year-over-year to a record $4.30 billion^a, operating margin was 9.4% (versus 9.8% a year earlier), and diluted EPS grew 13.3% to a record $6.57. Remaining performance obligations (RPOs) reached a record $12.61 billion, up nearly 29% year-over-year, which provides strong visibility into future revenue. Growth was led by the Electrical and Mechanical segments, while the U.S. industrial services segment margin compressed sharply to 2.2%.

For the first nine months, revenue grew 15.5% to $12.47 billion^b and GAAP diluted EPS was $18.53, or $18.68 excluding Miller Electric transaction costs. Organic revenue growth was 8.1% in the quarter and 7.3% year-to-date, so acquisitions (notably Miller Electric, closed in Q1 2025) contributed a significant share of growth. Cash flow was weaker: operating cash flow was $778 million year-to-date versus $938 million a year earlier, and roughly $900 million was spent on acquisitions, which pushed cash down to about $655 million from $1.34 billion at year-end 2024.

Management narrowed full-year 2025 guidance to revenue of $16.7^c–$16.8 billion (from $16.4–$16.9 billion), a non-GAAP operating margin of 9.2%–9.4%, and non-GAAP diluted EPS of $25.00–$25.75 (low end raised from $24.50). The guidance reflects the pending sale of the U.K.

Building Services business in Q4. Investors should weigh the strong backlog and earnings growth against the lower cash balance, higher working capital needs, and the execution risk tied to large, complex projects.

02—Key points

Key Highlights

Record Q3 2025 revenue of $4.30 billion, up 16.4% year-over-year; organic growth was 8.1%.
Record Q3 diluted EPS of $6.57, up 13.3% from $5.80; operating margin was 9.4% versus 9.8% a year earlier.
Record remaining performance obligations of $12.61 billion, up nearly 29% year-over-year (about $2.82 billion added), led by Network and Communications, Water and Wastewater, Institutional, and Manufacturing sectors.
Nine-month revenue of $12.47 billion (+15.5%) and GAAP diluted EPS of $18.53; non-GAAP EPS of $18.68 excluding Miller Electric transaction costs.
Full-year 2025 guidance narrowed: revenue $16.7–$16.8 billion, non-GAAP operating margin 9.2%–9.4%, non-GAAP diluted EPS $25.00–$25.75 (low end raised from $24.50).
Operating cash flow fell to $778 million year-to-date from $938 million, and cash declined to $655 million after roughly $900 million of acquisition payments.
U.S. industrial services operating margin dropped to 2.2% in Q3 from 1.1%... improved from 1.1% a year earlier, but remains the weakest segment; the Electrical segment margin fell to 11.3% from 14.1%.

03—Questions

Frequently Asked Questions

What drove EMCOR's revenue growth in the third quarter of 2025?
Revenue rose 16.4% to $4.30 billion. Acquisitions contributed about 8.3 percentage points, including Miller Electric, while organic growth was 8.1%. The U.S. electrical construction segment grew the most, with revenue up about 52% year-over-year to $1.29 billion.
Is the backlog large enough to support future growth?
Yes. Remaining performance obligations reached a record $12.61 billion, up nearly 29% year-over-year. That is roughly 1.8 times trailing annual revenue in the company's current run-rate, which supports near-term revenue visibility. However, RPOs are not guaranteed revenue, and the High-Tech Manufacturing backlog declined as semiconductor projects were completed.
Why did the full-year guidance change, and what is the impact of the U.K. sale?
Management raised the low end of the EPS range to $25.00 from $24.50 and narrowed revenue to $16.7–$16.8 billion. The guidance is adjusted for the anticipated fourth-quarter sale of the U.K. Building Services segment, which had $136 million of quarterly revenue. Non-GAAP figures exclude transaction costs and the expected gain on the sale, so the reported GAAP result may differ materially.
Why did cash fall so much in 2025?
Cash and equivalents dropped from $1.34 billion at year-end 2024 to $655 million at September 30, 2025. The main causes were about $900 million of acquisition payments, $432 million of share repurchases, and a $222 million working capital outflow, partly offset by $778 million of operating cash flow. Management still has an undrawn revolving credit facility to support liquidity.
Are there concerns about margins or segment performance?
Yes. Consolidated operating margin declined 40 basis points year-over-year to 9.4%, and the U.S. electrical segment margin fell to 11.3% from 14.1% as the business scaled rapidly. U.S. industrial services remains weak at a 2.2% margin. SG&A held at 10.0% of revenue, and acquisition-related amortization rose to $47.8 million from $34.5 million, adding to pressure on reported margins.

04—Continue

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