EMCOR Group Inc (EME)

EMCOR Group, Inc. Reports First Quarter 2026 ResultsApril 29, 2026 7:30 AM
Business Wire
Record Quarterly Revenues of $4.63 billion, 19.7% Increase Year-over-Year


First Quarter Diluted EPS of $6.84, 30.0% Increase Year-over-Year


Record Remaining Performance Obligations of $15.62 billion, 32.9% Increase Year-over-Year


Increases 2026 Revenue Guidance Range to $18.50 billion - $19.25 billion from $17.75 billion - $18.50 billion


Increases 2026 Diluted EPS Guidance Range to $28.25 - $29.75 from $27.25 - $29.25


EMCOR Group, Inc. (NYSE: EME) today reported results for the first quarter ended March 31, 2026.


First Quarter 2026 Results of Operations


For the first quarter of 2026, revenues totaled a quarterly record of $4.63 billion, an increase of 19.7%, compared to $3.87 billion for the first quarter of 2025. On an organic basis, when adjusting for incremental acquisition contribution and the impact of the sale of the Company's United Kingdom operations, first quarter revenues increased by 16.8%.


Net income for the first quarter of 2026 was $305.5 million, or $6.84 per diluted share, compared to net income of $240.7 million, or $5.26 per diluted share, for the first quarter of 2025. Net income for the first quarter of 2025 included $9.4 million, or $6.9 million after taxes, of transaction related costs associated with the acquisition of Miller Electric Company. Excluding these transaction costs, non-GAAP net income for the first quarter of 2025 was $247.6 million, or $5.41 per diluted share.


Operating income for the first quarter of 2026 was $403.8 million, or 8.7% of revenues, compared to operating income of $318.8 million, or 8.2% of revenues, for the first quarter of 2025. Excluding the previously referenced transaction costs, non-GAAP operating income for the first quarter of 2025 was $328.1 million, or 8.5% of revenues. Operating income included depreciation and amortization expense (inclusive of amortization of identifiable intangible assets) of $52.6 million and $41.9 million for the first quarter of 2026 and 2025, respectively.


Refer to the attached tables for a reconciliation of non-GAAP revenue growth, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share to the comparable GAAP measures.


Selling, general and administrative expenses for the first quarter of 2026 totaled $460.1 million, or 9.9% of revenues, compared to $404.0 million, or 10.4% of revenues, for the first quarter of 2025.


The Company's income tax rate for the first quarter of 2026 was 25.5%, compared to 25.8% for the first quarter of 2025.


Remaining performance obligations (“RPOs”) as of March 31, 2026 were a record $15.62 billion, compared to $13.25 billion as of December 31, 2025 and $11.75 billion as of March 31, 2025. When compared to December 31, 2025, the Company experienced increased RPOs across the majority of the sectors in which it operates, with the most significant growth coming from Network and Communications, Water and Wastewater, Institutional, and Healthcare.


Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented, “We started the year well, with record quarterly revenues and strong operating performance as we experienced sustained momentum across several key market sectors and geographies. These results reflect our strategic positioning and operational excellence across our construction and services platforms while demonstrating our customers' confidence in EMCOR as a partner of choice for complex and mission-critical projects. Our Remaining Performance Obligations are again at record levels and we are pleased with the quality and diversity of our bookings during the quarter. The fundamentals of our business remain strong and we are well-positioned for the remainder of 2026."


Full-Year 2026 Guidance


Based on anticipated project mix and visibility into the remainder of the year, EMCOR now expects the following for full year 2026:




 






Current Guidance (4/29/26)






Previous Guidance (2/26/26)








Revenues






$18.50 billion – $19.25 billion






$17.75 billion – $18.50 billion








Operating Margin






9.0% – 9.4%






9.0% – 9.4%








Diluted EPS






$28.25 – $29.75






$27.25 – $29.25







First Quarter 2026 Earnings Conference Call Information


EMCOR Group's first quarter conference call will be broadcast live via the internet today, Wednesday, April 29, at 10:30 AM Eastern Daylight Time and can be accessed through the Company's website at www.emcorgroup.com.


About EMCOR


A Fortune 500 company and a member of the S&P 500, EMCOR Group, Inc. is a leader in mechanical and electrical construction services, industrial and energy infrastructure, and building services. This press release and other press releases may be viewed at the Company’s website at www.emcorgroup.com. EMCOR routinely posts information that may be important to investors on the landing page of the Company's website and in the “Investor Relations” section of the website at www.emcorgroup.com/investor-relations. Investors and potential investors are encouraged to consult the EMCOR website regularly for important information about EMCOR.


Forward Looking Statements:


This release and related presentation contain forward-looking statements. Such statements speak only as of April 29, 2026, and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements include statements regarding anticipated future operating and financial performance; financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations; the timing of future projects; our ability to support organic growth and balanced capital allocation, including the anticipated impact of our strategic investments; the financial and operational impact of acquisitions and/or dispositions, our competitiveness, market opportunities, and growth prospects; customer trends; and project mix. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements do not guarantee future performance or events. Applicable risks and uncertainties include, but are not limited to, adverse effects of general economic conditions; domestic and international political developments and/or conflicts; changes in the specific markets for EMCOR’s services; weakness of the sectors from which we generate revenues; adverse business conditions; scarcity of skilled labor; productivity challenges; the nature and extent of supply chain disruptions impacting availability and pricing of materials; inflationary trends, including fluctuations in energy costs; the impact of legislation and/or government regulations; changes in foreign trade policy including the effect of tariffs; changes in interest rates; the lack of availability of adequate levels of surety bonding; increased competition; the impact of legal proceedings, claims, lawsuits, or governmental investigations; and unfavorable developments in the mix of our business. Certain of the risk factors associated with EMCOR’s business are also discussed in Part I, Item 1A “Risk Factors,” of the Company’s 2025 Form 10-K, and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov and www.emcorgroup.com. Such risk factors should be taken into account in evaluating our business, including any forward-looking statements.


Non-GAAP Measures:


This release and related presentation also include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this release. The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally. We also believe that these non-GAAP measures provide investors with useful information with respect to our ongoing operations. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP, and may not be comparable to the calculation of similar measures of other companies.




EMCOR GROUP, INC.








FINANCIAL HIGHLIGHTS








CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS








(In thousands, except share and per share information)








(Unaudited)









 



 






 






For the quarters ended




March 31,








 






 






2026






 






2025








Revenues






 






$






4,628,233






 






$






3,867,372








Cost of sales






 






 






3,764,283






 






 






3,144,654








Gross profit






 






 






863,950






 






 






722,718








Selling, general and administrative expenses






 






 






460,105






 






 






403,962








Operating income






 






 






403,845






 






 






318,756








Net periodic pension income






 






 






—






 






 






54








Interest income, net






 






 






6,227






 






 






5,387








Income before income taxes






 






 






410,072






 






 






324,197








Income tax provision






 






 






104,588






 






 






83,520








Net income






 






$






305,484






 






$






240,677








 






 






 






 






 








Basic earnings per common share






 






$






6.85






 






$






5.27








 






 






 






 






 








Diluted earnings per common share






 






$






6.84






 






$






5.26








 






 






 






 






 








Weighted average shares of common stock outstanding:






 






 






 






 








Basic






 






 






44,564,932






 






 






45,634,877








Diluted






 






 






44,687,157






 






 






45,784,235








 






 






 






 






 








Dividends declared per common share






 






$






0.40






 






$






0.25








 






 






 






 






 









EMCOR GROUP, INC.








CONDENSED CONSOLIDATED BALANCE SHEETS








(In thousands)











 



 






 






(Unaudited)




March 31,




2026






 






December 31,




2025








ASSETS






 






 






 






 








Current assets:






 






 






 






 








Cash and cash equivalents






 






$






916,420






 






$






1,111,968








Accounts receivable, net






 






 






4,549,956






 






 






4,241,177








Contract assets






 






 






377,332






 






 






337,717








Inventories






 






 






130,208






 






 






126,252








Prepaid expenses and other






 






 






100,577






 






 






120,231








Total current assets






 






 






6,074,493






 






 






5,937,345








Property, plant, and equipment, net






 






 






264,696






 






 






253,277








Operating lease right-of-use assets






 






 






478,646






 






 






439,029








Goodwill






 






 






1,433,937






 






 






1,412,414








Identifiable intangible assets, net






 






 






1,089,866






 






 






1,108,828








Other assets






 






 






166,469






 






 






140,506








Total assets






 






$






9,508,107






 






$






9,291,399








LIABILITIES AND EQUITY






 






 






 






 








Current liabilities:






 






 






 






 








Accounts payable






 






$






1,149,028






 






$






1,227,428








Contract liabilities






 






 






2,417,021






 






 






2,327,360








Accrued payroll and benefits






 






 






710,038






 






 






870,154








Other accrued expenses and liabilities






 






 






443,116






 






 






340,785








Operating lease liabilities, current






 






 






102,296






 






 






99,213








Total current liabilities






 






 






4,821,499






 






 






4,864,940








Operating lease liabilities, long-term






 






 






408,122






 






 






368,996








Other long-term obligations






 






 






410,910






 






 






382,482








Total liabilities






 






 






5,640,531






 






 






5,616,418








Equity:






 






 






 






 








Total EMCOR Group, Inc. stockholders’ equity






 






 






3,866,539






 






 






3,673,944








Noncontrolling interests






 






 






1,037






 






 






1,037








Total equity






 






 






3,867,576






 






 






3,674,981








Total liabilities and equity






 






$






9,508,107






 






$






9,291,399









EMCOR GROUP, INC.








CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS








For the Three Months Ended March 31, 2026 and 2025








(In thousands) (Unaudited)











 



 






 






2026






 






2025








Cash flows - operating activities:






 






 






 






 








Net income






 






$






305,484






 






 






$






240,677






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 






 








Depreciation and amortization






 






 






18,362






 






 






 






15,582






 








Amortization of identifiable intangible assets






 






 






34,212






 






 






 






26,363






 








Provision for credit losses






 






 






395






 






 






 






4,718






 








Deferred income taxes






 






 






(6,954






)






 






 






2,777






 








Excess tax benefits from share-based compensation






 






 






(6,042






)






 






 






(3,496






)








Non-cash share-based compensation expense






 






 






10,590






 






 






 






9,270






 








Other reconciling items






 






 






(650






)






 






 






(798






)








Changes in operating assets and liabilities, excluding the effect of businesses acquired






 






 






(354,839






)






 






 






(186,622






)








Net cash provided by operating activities






 






 






558






 






 






 






108,471






 








Cash flows - investing activities:






 






 






 






 








Payments for acquisitions of businesses, net of cash acquired






 






 






(43,674






)






 






 






(850,644






)








Proceeds from sale or disposal of property, plant, and equipment






 






 






636






 






 






 






1,334






 








Purchases of property, plant, and equipment






 






 






(28,712






)






 






 






(26,131






)








Net cash used in investing activities






 






 






(71,750






)






 






 






(875,441






)








Cash flows - financing activities:






 






 






 






 








Proceeds from revolving credit facility






 






 






—






 






 






 






250,000






 








Repayments of finance lease liabilities






 






 






(646






)






 






 






(775






)








Dividends paid to stockholders






 






 






(17,810






)






 






 






(11,451






)








Repurchases of common stock






 






 






(87,107






)






 






 






(224,832






)








Taxes paid related to net share settlements of equity awards






 






 






(17,984






)






 






 






(13,351






)








Payments for contingent consideration arrangements






 






 






(809






)






 






 






(420






)








Net cash used in financing activities






 






 






(124,356






)






 






 






(829






)








Effect of exchange rate changes on cash, cash equivalents, and restricted cash






 






 






—






 






 






 






4,869






 








Decrease in cash, cash equivalents, and restricted cash






 






 






(195,548






)






 






 






(762,930






)








Cash, cash equivalents, and restricted cash at beginning of year (1)






 






 






1,111,968






 






 






 






1,340,395






 








Cash, cash equivalents, and restricted cash at end of period (2)






 






$






916,420






 






 






$






577,465






 








_______________



(1)






Includes $0.8 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheet as of December 31, 2024.








(2)






Includes $0.8 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheet as of March 31, 2025.









EMCOR GROUP, INC.








SEGMENT INFORMATION








(In thousands, except for percentages) (Unaudited)









 



 






 






For the quarters ended March 31,








 






 






2026






 






% of

Total






 






2025






 






% of

Total








Revenues from unrelated entities:






 






 






 






 






 






 






 






 








United States electrical construction and facilities services






 






$






1,447,414






 






31






%






 






$






1,087,844






 






28






%








United States mechanical construction and facilities services






 






 






2,026,341






 






44






%






 






 






1,572,602






 






41






%








United States building services






 






 






772,649






 






17






%






 






 






742,623






 






19






%








United States industrial services






 






 






381,829






 






8






%






 






 






359,002






 






9






%








Total United States operations






 






 






4,628,233






 






100






%






 






 






3,762,071






 






97






%








United Kingdom building services






 






 






—






 






—






%






 






 






105,301






 






3






%








Consolidated revenues






 






$






4,628,233






 






100






%






 






$






3,867,372






 






100






%









 






 






For the quarters ended March 31,








 






 






2026






 






% of Segment Revenues






 






2025






 






% of Segment Revenues








Operating income (loss):






 






 






 






 






 






 






 






 








United States electrical construction and facilities services






 






$






174,481






 






 






12.1






%






 






$






136,057






 






 






12.5






%








United States mechanical construction and facilities services






 






 






221,643






 






 






10.9






%






 






 






186,747






 






 






11.9






%








United States building services






 






 






40,449






 






 






5.2






%






 






 






36,423






 






 






4.9






%








United States industrial services






 






 






12,780






 






 






3.3






%






 






 






6,760






 






 






1.9






%








Total United States operations






 






 






449,353






 






 






9.7






%






 






 






365,987






 






 






9.7






%








United Kingdom building services






 






 






—






 






 






—






 






 






 






4,987






 






 






4.7






%








Corporate administration






 






 






(45,508






)






 






—






 






 






 






(52,218






)






 






—






 








Consolidated operating income






 






 






403,845






 






 






8.7






%






 






 






318,756






 






 






8.2






%








Other items:






 






 






 






 






 






 






 






 








Net periodic pension income






 






 






—






 






 






 






 






 






54






 






 






 








Interest income, net






 






 






6,227






 






 






 






 






 






5,387






 






 






 








Income before income taxes






 






$






410,072






 






 






 






 






$






324,197






 






 






 









EMCOR GROUP, INC.








RECONCILIATION OF ORGANIC REVENUE GROWTH








(In thousands, except for percentages) (Unaudited)








The following table provides a reconciliation between organic revenue growth, a non-GAAP measure, and total revenue growth for the quarter ended March 31, 2026.









 



 






 






For the quarter ended




March 31, 2026








 






 






$






 






%








GAAP revenue growth






 






$






760,861






 






 






19.7






%








Incremental revenues from acquisitions






 






 






(234,120






)






 






(6.1






)%








Impact of lost revenues resulting from sale of United Kingdom operations






 






 






105,301






 






 






3.2






%








Organic revenue growth, a non-GAAP measure






 






$






632,042






 






 






16.8






%









EMCOR GROUP, INC.








RECONCILIATION OF OTHER NON-GAAP MEASURES








(In thousands, except for percentages and per share data) (Unaudited)








In our press release, we provide non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per common share for the quarter ended March 31, 2025. The following tables provide a reconciliation between these amounts determined on a non-GAAP basis and the most directly comparable GAAP measures.









 



 






 






For the quarter ended




March 31,








 






 






2026






 






2025








GAAP operating income






 






$






403,845






 






$






318,756








Transaction expenses related to the acquisition of Miller Electric






 






 






—






 






 






9,353








Non-GAAP operating income






 






$






403,845






 






$






328,109









 






 






For the quarter ended




March 31,








 






 






2026






 






2025








GAAP operating margin






 






8.7






%






 






8.2






%








Transaction expenses related to the acquisition of Miller Electric






 






—






%






 






0.2






%








Non-GAAP operating margin (1)






 






8.7






%






 






8.5






%









 






 






For the quarter ended




March 31,








 






 






2026






 






2025








GAAP net income






 






$






305,484






 






$






240,677






 








Transaction expenses related to the acquisition of Miller Electric






 






 






—






 






 






9,353






 








Tax effect of transaction expenses related to the acquisition of Miller Electric






 






 






—






 






 






(2,410






)








Non-GAAP net income






 






$






305,484






 






$






247,620






 









 






 






For the quarter ended




March 31,








 






 






2026






 






2025








GAAP diluted earnings per common share






 






$






6.84






 






$






5.26






 








Transaction expenses related to the acquisition of Miller Electric






 






 






—






 






 






0.20






 








Tax effect of transaction expenses related to the acquisition of Miller Electric






 






 






—






 






 






(0.05






)








Non-GAAP diluted earnings per common share






 






$






6.84






 






$






5.41









_______________



(1)






Amounts presented in this table do not foot due to rounding.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429893569/en/
Lucas Sullivan

Director

Financial Planning & Analysis

(203) 849-7938


FTI Consulting, Inc.

Investors: Blake Mueller

(718) 578-3706


Original: EMCOR Group, Inc. Reports First Quarter 2026 Results