EMCOR Group (EME) Company Report

EMCOR Group is experiencing significant growth, particularly in data centers (which constitute 24%-25% of revenue), high-tech manufacturing, healthcare, and water/wastewater projects. The company anticipates being "pretty busy" with data center work until 2031.
The company's margins have improved, trending towards 10%, driven by robust demand, strong execution, and investments in prefabrication, Virtual Design Construct (VDC), and Building Information Model (BIM). These efficiency gains have resulted in revenue growing three times faster than headcount over the past five years.
EMCOR projects its construction businesses to achieve high single-digit organic growth and its building services segment to grow 200-300 basis points above GDP. Historically, its construction segments have grown 500-600 basis points above the broader non-residential market.
Capital allocation is balanced 50/50 between business reinvestments and shareholder returns, maintaining a low-leverage balance sheet. The M&A strategy focuses on core U.S. markets, and the company recently completed the exit of its U.K. business.

Nov 13, 2025, 2:30 PM

Transcript

EMCOR discusses business strategy, margin drivers, and data center outlook at Baird Conference

EME

New Projects/Investments

M&A

Revenue Acceleration/Inflection

EMCOR, a company of skilled tradespeople, is a project-oriented firm with a maintenance element, driven by major trends in data centers, high-tech manufacturing, healthcare, and water/wastewater.
The company's margins have improved, trending closer to 10%, attributed to strong demand, execution, and investments in prefabrication, Virtual Design Construction (VDC), and Building Information Modeling (BIM). These investments have led to revenue growth at three times the rate of headcount growth over a five-year period (10% CAGR for revenue vs. 3% for headcount).
EMCOR maintains a near 50/50 capital allocation balance between business reinvestments (organic growth, M&A) and shareholder returns, and recently exited its U.K. business to focus on core U.S. markets.
Data centers constitute 24%-25% of EMCOR's revenue, with management indicating strong visibility for projects until 2031 based on hyperscaler building plans and power infrastructure demands.

Nov 13, 2025, 2:30 PM

Transcript

EMCOR Group Discusses Growth Drivers, Operational Strategy, and Market Outlook

EME

New Projects/Investments

M&A

Revenue Acceleration/Inflection

EMCOR Group is a project-oriented company focused on skilled trades, with 12,000+ projects annually. The fastest-growing projects are those over $10 million, driven by major trends such as data centers, high-tech manufacturing, healthcare, and water/wastewater. Data centers currently represent 24%-25% of EMCOR's revenue, with long-term visibility on building plans extending to 2031.
The company attributes improved margins to strong demand, execution, and significant investments in prefabrication, Virtual Design Construction (VDC), and Building Information Modeling (BIM). These investments have enabled revenue to grow at approximately three times the rate of headcount growth over a five-year period.
EMCOR maintains a near 50/50 balance on capital allocation between business reinvestments (organic growth and M&A) and shareholder returns (share repurchases and dividends), operating as a low-leverage company. The company recently exited its UK business and focuses M&A on US-based electrical construction, mechanical construction, mechanical services, building automation, and controls.
Construction businesses are expected to achieve high single-digit organic growth, while the building services segment is projected to grow at GDP plus 200-300 basis points. Consolidated EMCOR has historically grown 200-300 basis points above the broader non-residential market over a five-year period.

Nov 13, 2025, 2:30 PM

Transcript

EMCOR Reports Strong Q3 2025 Financials and Strategic M&A Activity

EME

Earnings

M&A

Guidance Update

EMCOR reported Q3 2025 revenues of $4.30 billion and diluted earnings per share of $6.57, contributing to year-to-date revenues of $12.47 billion and diluted EPS of $18.53 as of September 30, 2025.
The company completed two significant acquisitions in 2025: Miller Electric for $868.6 million on February 3, 2025, and J.W. Danforth on November 4, 2025, with Danforth expected to add $350 million to $400 million to 2026 revenue.
EMCOR plans to divest EMCOR UK for $255 million by the end of 2025, a segment that currently generates approximately $500 million in annualized revenue.
The company maintains a strong outlook with record Remaining Performance Obligations (RPOs) of $12.6 billion and is strategically positioned to benefit from megatrends in data centers, reshoring, and energy transition.

Nov 13, 2025, 2:30 PM

Presentation

EMCOR Reports Strong Growth and Strategic Expansion in Data Center Market

EME

Revenue Acceleration/Inflection

New Projects/Investments

M&A

EMCOR reported a 29% year-over-year increase in RPO (Remaining Performance Obligations) to $12.61 billion, with 80% organic growth, and anticipates maintaining a high single-digit to low double-digit organic growth rate in the near term. The company achieved consolidated operating income margins of 9-9.5% and expects cash flow generation to be at least equal to net income.
The company is experiencing broad-based revenue growth, with its data center backlog doubling from last year. Revenue in high-tech manufacturing is 5-6 times what it was a couple of years ago. EMCOR has expanded its data center footprint to 17 electrical markets and is seeing stronger growth in its mechanical segment (up almost 120% year to date) compared to electrical (up 80% year to date), partly due to the increased cooling content required for AI data centers.
EMCOR has deployed over $900 million in acquisitions, including the John W. Danforth acquisition closing in Q4, and over $400 million in share repurchases, while also planning to divest its U.K. business. Strategic investments in prefabrication and construction technologies have enabled revenue growth at three times the rate of headcount growth, with CapEx CAGR at 28% over three years compared to a 14% revenue CAGR.

Nov 5, 2025, 7:00 PM

Transcript

EMCOR Highlights Strong Q3 2025 Results and Strategic Data Center Expansion

EME

Revenue Acceleration/Inflection

New Projects/Investments

M&A

EMCOR reported strong Q3 2025 results, with Remaining Performance Obligations (RPO) up 29% year-over-year to $12.61 billion, driven by 80% organic growth and broad-based revenue growth across 10 out of 11 construction end markets. The company anticipates maintaining a high single-digit to low double-digit organic growth rate in the near term and is achieving record consolidated operating income margins of 9-9.5%.
The company is actively managing its portfolio through the divestiture of its U.K. business and strategic acquisitions, including the John W. Danforth acquisition (over $900 million in total acquisitions), alongside $400 million-plus in share repurchases.
EMCOR's data center backlog doubled from last year, with high-tech manufacturing revenue now five to six times what it was in 2021. The company has significantly expanded its data center market presence, now servicing 17 electrical and 7 mechanical distinct data center markets.
AI-dedicated data centers require substantially more MEP content, with an AI multiplier of 1.2x for electrical and 1.4-1.8x for mechanical compared to traditional cloud storage, contributing to year-to-date growth rates of 80% for electrical and almost 120% for mechanical in data center work.
EMCOR is achieving revenue growth two to three times the rate of headcount growth in its construction segments, supported by significant investments in prefabrication and construction technologies, with CapEx CAGR at 28% over the last three years.

Nov 5, 2025, 7:00 PM

Transcript

EMCOR Reports Strong RPO Growth and Significant Data Center Expansion

EME

Revenue Acceleration/Inflection

New Projects/Investments

M&A

EMCOR reported strong financial performance and outlook, with Remaining Performance Obligations (RPO) up 29% year over year to approximately $12.61 billion, 80% of which was organic growth. The company expects to maintain a high single-digit to low double-digit organic growth rate over the near term.
The company is experiencing significant growth in data center and high-tech manufacturing sectors, with data center backlog doubling from last year and high-tech manufacturing revenue now five to six times what it was a few years ago.
EMCOR has expanded its data center market presence, now servicing 17 distinct electrical data center markets and seven mechanical data center markets, up from four and two/three respectively in 2019/2020. The mechanical segment's data center revenue growth rate is particularly strong, up almost 120% year-to-date.
To support this growth and complex project requirements, EMCOR is investing in capacity, including adding over 400,000 square feet of fabrication space over an 18-month period , and has engaged in strategic capital allocation through acquisitions and divestitures.

Nov 5, 2025, 7:00 PM

Transcript

EMCOR (EME) Announces Strong Q3 2025 Results and Updates Full-Year Guidance

EME

Earnings

Guidance Update

M&A

EMCOR (EME) reported record third quarter 2025 revenues of $4,302 million, a 16.4% increase from Q3 2024, with diluted EPS of $6.57, up 13.3% year-over-year.
The company achieved record Remaining Performance Obligations (RPOs) of $12.61 billion, marking a 29% year-over-year increase.
EMCOR announced the planned divestiture of EMCOR UK for $255 million, expected to close by the end of 2025, which is anticipated to be modestly accretive to go-forward operating margins and generate capital for acquisitions.
The full-year 2025 guidance was updated, with revenues now projected between $16.7 billion and $16.8 billion, and non-GAAP diluted EPS between $25.00 and $25.75.

Oct 30, 2025, 2:30 PM

Presentation

EMCOR Reports Strong Q3 2025 Results and Updates Full-Year Guidance

EME

Earnings

Guidance Update

M&A

EMCOR reported strong Q3 2025 financial results, with diluted EPS of $6.57 and revenues of $4.3 billion, a 16.4% increase from the prior year period.
The company achieved record Remaining Performance Obligations (RPOs) of $12.6 billion, representing a 29% increase year-over-year and a 6% sequential increase from June to September.
Full-year 2025 guidance was updated, with revenue narrowed to a range of $16.7 billion to $16.8 billion and non-GAAP diluted EPS to $25.00 to $25.75.
Strategic capital allocation for the first nine months of 2025 included $900 million for acquisitions and $430 million for share repurchases.
EMCOR announced the sale of its UK business for approximately $255 million and the acquisition of the John W. Danforth Company, expected to add $350 million to $400 million in revenues.

Oct 30, 2025, 2:30 PM

Transcript

EMCOR Group Reports Strong Q3 2025 Results, Updates Guidance, and Announces Strategic M&A

EME

Earnings

Guidance Update

M&A

EMCOR Group reported strong Q3 2025 financial results, with diluted earnings per share of $6.57 and revenues of $4.3 billion, marking a 16.4% increase from the prior year period. The company also achieved an operating margin of 9.4% and generated $475.5 million in operating cash flow.
Remaining Performance Obligation (RPO) reached a record $12.6 billion, an increase of 29% year-over-year, primarily driven by robust demand in data centers, with network and communications RPOs totaling $4.3 billion.
The company updated its full-year 2025 guidance, narrowing revenue to a range of $16.7 billion-$16.8 billion and non-GAAP diluted earnings per share to $25-$25.75.
EMCOR announced the sale of its U.K. business for approximately $255 million, expected to close by year-end, and the acquisition of John W. Danforth Company, a mechanical construction firm expected to add $350 million-$400 million in revenues, also expected to close in Q4.

Oct 30, 2025, 2:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for EMCOR Group.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Anthony Guzzi say about margins?What are EMCOR Group's strategic priorities?How is EMCOR Group positioned vs competitors?How did EMCOR Group do last quarter?

Let Fintool AI Agent track EMCOR Group's earnings for you

Get instant analysis when filings drop