01—Abstract
Summary
Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
EMCOR Group (NYSE: EME) reported a strong fiscal 2026 second quarter ended June 30, 2026, with record quarterly revenues of $5.15 billiona, up 19.8% year-over-year (organic growth of 19.6% after adjusting for acquisitions and the sale of its UK operations).
Operating income rose to $547.3 millionb, a record second-quarter operating margin of 10.6% versus 9.6% a year ago, and diluted EPS reached $9.06, up 34.8%. Remaining performance obligations (RPOs) hit a record $17.14 billion, up 43.9% year-over-year, providing substantial revenue visibility. Growth was broad-based across the U.S. electrical, mechanical, building services, and industrial segments, with the largest RPO gains in Network and Communications, Water and Wastewater, Institutional, and Healthcare.
Management raised full-year 2026 guidance meaningfully: revenues to $20.00c–$20.50 billion (from $18.50–$19.25 billion), operating margin to 9.5%–9.8% (from 9.0%–9.4%), and diluted EPS to $32.00–$33.25 (from $28.25–$29.75). The guidance raise reflects year-to-date momentum and visibility into the second half, and management emphasized pricing discipline and selective project selection. Balance sheet and cash flow show a more mixed picture.
Operating cash flow for the first half was $289.9 milliond, down from $302.2 million, as working capital consumed $525.9 million, driven largely by a $0.9 billion increase in accounts receivable and a $0.3 billion rise in contract liabilities. Cash fell to $924.4 million from $1.11 billion at year-end, reflecting $268.5 million in buybacks, $94.2 million of acquisition payments, and $35.6 million in dividends. Quarterly dividends were increased to $0.40 per share from $0.25 a year earlier.
02—Key points
Key Highlights
- Record Q2 revenue of $5.15B, up 19.8% YoY (19.6% organic); H1 revenue of $9.78B, up 19.7%.
- Record Q2 operating income of $547.3M with a 10.6% operating margin, up from 9.6% a year earlier.
- Q2 diluted EPS of $9.06, up 34.8% YoY; H1 diluted EPS of $15.89 versus $11.96 in H1 2025 (GAAP, no non-GAAP adjustments in 2026).
- Record remaining performance obligations of $17.14B, up 43.9% YoY, led by Network and Communications, Water and Wastewater, Institutional, and Healthcare.
- 2026 guidance raised: revenue to $20.00–$20.50B, operating margin to 9.5%–9.8%, diluted EPS to $32.00–$33.25 from prior ranges.
- First-half operating cash flow of $289.9M was roughly flat YoY, with working capital absorbing $525.9M, mainly receivables and contract liabilities growth.
- Quarterly dividend increased to $0.40 per share from $0.25, and $268.5M of share repurchases in the first half.
03—Questions
Frequently Asked Questions
How strong was EMCOR's growth in the second quarter of 2026?
Revenue grew 19.8% to a record $5.15 billion, with organic growth of 19.6% after adjusting for acquisitions and the sale of the UK operations. Operating income grew about 32% to $547.3 million, and diluted EPS rose 34.8% to $9.06.
Why did EMCOR raise its 2026 guidance?
Management cited strong year-to-date momentum and visibility into the rest of the year. The new guidance calls for revenue of $20.00–$20.50 billion (up from $18.50–$19.25 billion), an operating margin of 9.5%–9.8% (up from 9.0%–9.4%), and diluted EPS of $32.00–$33.25 (up from $28.25–$29.75).
What does the record backlog of $17.14 billion indicate?
Remaining performance obligations rose 43.9% year-over-year, indicating strong contracted future revenue and demand across most of EMCOR's sectors. This supports revenue visibility, though backlog does not guarantee future results and may be affected by project timing and cancellations.
Are there any concerns in the cash flow or balance sheet?
First-half operating cash flow was $289.9 million, roughly flat versus last year, as working capital absorbed $525.9 million, mainly from a $0.9 billion increase in receivables and higher contract liabilities. Cash declined to $924.4 million from $1.11 billion at year-end, though the company continued buybacks and a higher dividend.
What factors could affect EMCOR's outlook?
The filing's forward-looking statements cite risks including economic conditions, skilled labor scarcity, supply chain and material cost inflation, tariffs, interest rates, surety bonding availability, competition, and changes in the sectors EMCOR serves. Investors should also monitor receivables collection given the sharp increase in accounts receivable.
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