EMCOR Group, Inc. Reports Fourth Quarter and Full Year 2025 Results
Key Terms
non-GAAP financial
remaining performance obligations financial
operating margin financial
organic basis financial
Record Quarterly and Full-Year Revenues of
Record Quarterly and Full-Year Diluted EPS of
Non-GAAP Quarterly and Full-Year Diluted EPS of
Record Remaining Performance Obligations of
2026 Revenues and Diluted EPS Guidance of
Fourth Quarter 2025 Results of Operations
For the fourth quarter of 2025, revenues totaled
Net income for the fourth quarter of 2025 was
Operating income for the fourth quarter of 2025 was
Refer to the attached tables for a reconciliation of 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 fourth quarter of 2025 totaled
The Company's income tax rate for the fourth quarter of 2025 was
Remaining performance obligations (“RPOs”) as of December 31, 2025, were a record
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented, “We had an excellent close to the year with our fourth quarter results, including strong revenue growth and exceptional operating performance. Our success was driven by solid execution as we continued to perform well on some of the most technically sophisticated, fast-paced, and demanding projects in our history. Our Remaining Performance Obligations are again at an all-time high as we continue to win and earn new business across multiple sectors, geographies, and trades. Our pipeline remains strong, reflecting the broad-based demand for our services and supporting our positive outlook for 2026."
Full-Year 2025 Results of Operations
Revenues for full year 2025 totaled
Net income for full year 2025 was
Operating income for full year 2025 was
Refer to the attached tables for a reconciliation of 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 totaled
The Company's income tax rate for full year 2025 was
Mr. Guzzi continued, “We are executing well across numerous sectors where demand for our services persists, bolstered by long-term underlying secular trends. Our execution, coupled with such demand, enabled us to achieve new milestones in 2025, including record revenues, operating margin, and diluted earnings per share. Our Electrical and Mechanical Construction segments continue to drive these results with combined full year revenue and operating income growth of
Full-Year 2026 Guidance
Based on anticipated project mix and current visibility into the coming year, EMCOR expects the following for full year 2026:
|
Full Year Guidance |
Revenues |
|
Operating Margin |
|
Diluted EPS |
|
Fourth Quarter and Full-Year 2025 Earnings Conference Call Information
EMCOR Group's fourth quarter conference call will be broadcast live via the internet today, Thursday, February 26, at 10:30 AM Eastern Standard 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 February 26, 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
EMCOR GROUP, INC.
|
|||||||||||
|
(Unaudited) |
|
|
|
|
||||||
|
For the quarters ended December 31, |
|
For the years ended December 31, |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
Revenues |
$ |
4,513,121 |
|
$ |
3,770,019 |
|
$ |
16,986,422 |
|
$ |
14,566,116 |
Cost of sales |
|
3,621,935 |
|
|
3,013,004 |
|
|
13,703,434 |
|
|
11,801,065 |
Gross profit |
|
891,186 |
|
|
757,015 |
|
|
3,282,988 |
|
|
2,765,051 |
Selling, general and administrative expenses |
|
462,308 |
|
|
368,451 |
|
|
1,714,446 |
|
|
1,420,188 |
Gain on sale of |
|
144,876 |
|
|
— |
|
|
144,876 |
|
|
— |
Operating income |
|
573,754 |
|
|
388,564 |
|
|
1,713,418 |
|
|
1,344,863 |
Net periodic pension income |
|
46 |
|
|
224 |
|
|
211 |
|
|
894 |
Interest income, net |
|
4,010 |
|
|
9,666 |
|
|
7,995 |
|
|
31,625 |
Income before income taxes |
|
577,810 |
|
|
398,454 |
|
|
1,721,624 |
|
|
1,377,382 |
Income tax provision |
|
143,203 |
|
|
106,293 |
|
|
448,807 |
|
|
370,237 |
Net income |
$ |
434,607 |
|
$ |
292,161 |
|
$ |
1,272,817 |
|
$ |
1,007,145 |
|
|
|
|
|
|
|
|
||||
Basic earnings per common share: |
$ |
9.72 |
|
$ |
6.35 |
|
$ |
28.30 |
|
$ |
21.61 |
|
|
|
|
|
|
|
|
||||
Diluted earnings per common share: |
$ |
9.68 |
|
$ |
6.32 |
|
$ |
28.19 |
|
$ |
21.52 |
|
|
|
|
|
|
|
|
||||
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
44,701,263 |
|
|
45,989,277 |
|
|
44,982,102 |
|
|
46,616,079 |
Diluted |
|
44,876,295 |
|
|
46,198,291 |
|
|
45,145,767 |
|
|
46,808,293 |
|
|
|
|
|
|
|
|
||||
Dividends declared per common share |
$ |
0.25 |
|
$ |
0.25 |
|
$ |
1.00 |
|
$ |
0.93 |
EMCOR GROUP, INC.
|
|||||
|
December 31, 2025 |
|
December 31, 2024 |
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,111,968 |
|
$ |
1,339,550 |
Accounts receivable, net |
|
4,241,177 |
|
|
3,577,537 |
Contract assets |
|
337,717 |
|
|
284,791 |
Inventories |
|
126,252 |
|
|
95,667 |
Prepaid expenses and other |
|
120,231 |
|
|
91,644 |
Total current assets |
|
5,937,345 |
|
|
5,389,189 |
Property, plant, and equipment, net |
|
253,277 |
|
|
207,489 |
Operating lease right-of-use assets |
|
439,029 |
|
|
316,128 |
Goodwill |
|
1,412,414 |
|
|
1,018,415 |
Identifiable intangible assets, net |
|
1,108,828 |
|
|
648,180 |
Other assets |
|
140,506 |
|
|
137,072 |
Total assets |
$ |
9,291,399 |
|
$ |
7,716,473 |
LIABILITIES AND EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
1,227,428 |
|
$ |
937,087 |
Contract liabilities |
|
2,327,360 |
|
|
2,047,540 |
Accrued payroll and benefits |
|
870,154 |
|
|
751,434 |
Other accrued expenses and liabilities |
|
340,785 |
|
|
336,555 |
Operating lease liabilities, current |
|
99,213 |
|
|
81,247 |
Total current liabilities |
|
4,864,940 |
|
|
4,153,863 |
Operating lease liabilities, long-term |
|
368,996 |
|
|
261,575 |
Other long-term obligations |
|
382,482 |
|
|
362,341 |
Total liabilities |
|
5,616,418 |
|
|
4,777,779 |
Equity: |
|
|
|
||
Total EMCOR Group, Inc. stockholders’ equity |
|
3,673,944 |
|
|
2,937,657 |
Noncontrolling interests |
|
1,037 |
|
|
1,037 |
Total equity |
|
3,674,981 |
|
|
2,938,694 |
Total liabilities and equity |
$ |
9,291,399 |
|
$ |
7,716,473 |
EMCOR GROUP, INC.
|
|||||||
|
|||||||
|
2025 |
|
2024 |
||||
Cash flows - operating activities: |
|
|
|
||||
Net income |
$ |
1,272,817 |
|
|
$ |
1,007,145 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
67,368 |
|
|
|
56,678 |
|
Amortization of identifiable intangible assets |
|
119,052 |
|
|
|
77,002 |
|
Provision for credit losses |
|
7,671 |
|
|
|
17,303 |
|
Deferred income taxes |
|
(16,055 |
) |
|
|
(29,115 |
) |
Gain on sale of |
|
(144,876 |
) |
|
|
— |
|
Gain on sale or disposal of property, plant, and equipment |
|
(2,229 |
) |
|
|
(1,012 |
) |
Non-cash (income) expense from contingent consideration arrangements |
|
(534 |
) |
|
|
8,892 |
|
Non-cash share-based compensation expense |
|
20,595 |
|
|
|
19,978 |
|
Other reconciling items |
|
(3,995 |
) |
|
|
(1,700 |
) |
Changes in operating assets and liabilities, excluding the effect of businesses acquired |
|
(17,751 |
) |
|
|
252,723 |
|
Net cash provided by operating activities |
|
1,302,063 |
|
|
|
1,407,894 |
|
Cash flows - investing activities: |
|
|
|
||||
Payments for acquisitions of businesses, net of cash acquired |
|
(1,022,105 |
) |
|
|
(228,173 |
) |
Net proceeds from sale of |
|
256,622 |
|
|
|
— |
|
Proceeds from sale or disposal of property, plant, and equipment |
|
4,647 |
|
|
|
3,839 |
|
Purchases of property, plant, and equipment |
|
(112,750 |
) |
|
|
(74,950 |
) |
Net cash used in investing activities |
|
(873,586 |
) |
|
|
(299,284 |
) |
Cash flows - financing activities: |
|
|
|
||||
Proceeds from revolving credit facility |
|
525,000 |
|
|
|
— |
|
Repayments of revolving credit facility |
|
(525,000 |
) |
|
|
— |
|
Repayments of finance lease liabilities |
|
(2,692 |
) |
|
|
(2,855 |
) |
Dividends paid to stockholders |
|
(45,023 |
) |
|
|
(43,384 |
) |
Repurchases of common stock |
|
(586,258 |
) |
|
|
(489,820 |
) |
Taxes paid related to net share settlements of equity awards |
|
(16,816 |
) |
|
|
(15,397 |
) |
Issuances of common stock under employee stock purchase plan |
|
— |
|
|
|
943 |
|
Payments for contingent consideration arrangements |
|
(12,038 |
) |
|
|
(4,852 |
) |
Distributions to noncontrolling interests |
|
(934 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(663,761 |
) |
|
|
(555,365 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
6,857 |
|
|
|
(2,600 |
) |
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(228,427 |
) |
|
|
550,645 |
|
Cash, cash equivalents, and restricted cash at beginning of year (1) |
|
1,340,395 |
|
|
|
789,750 |
|
Cash, cash equivalents, and restricted cash at end of period (1) |
$ |
1,111,968 |
|
|
$ |
1,340,395 |
|
|
|||||||
EMCOR GROUP, INC.
|
|||||||||||
|
(Unaudited) |
||||||||||
|
For the quarters ended December 31, |
||||||||||
|
2025 |
|
% of Total |
|
2024 |
|
% of Total |
||||
Revenues from unrelated entities: |
|
|
|
|
|
|
|
||||
|
$ |
1,360,892 |
|
30 |
% |
|
$ |
933,192 |
|
25 |
% |
|
|
1,943,342 |
|
43 |
% |
|
|
1,660,600 |
|
44 |
% |
|
|
772,481 |
|
17 |
% |
|
|
755,626 |
|
20 |
% |
|
|
341,111 |
|
8 |
% |
|
|
312,680 |
|
8 |
% |
Total |
|
4,417,826 |
|
98 |
% |
|
|
3,662,098 |
|
97 |
% |
|
|
95,295 |
|
2 |
% |
|
|
107,921 |
|
3 |
% |
Consolidated revenues |
$ |
4,513,121 |
|
100 |
% |
|
$ |
3,770,019 |
|
100 |
% |
|
|
|
|
|
|
|
|
||||
|
For the years ended December 31, |
||||||||||
|
2025 |
|
% of Total |
|
2024 |
|
% of Total |
||||
Revenues from unrelated entities: |
|
|
|
|
|
|
|
||||
|
$ |
5,074,252 |
|
30 |
% |
|
$ |
3,342,927 |
|
23 |
% |
|
|
7,050,481 |
|
42 |
% |
|
|
6,405,657 |
|
44 |
% |
|
|
3,122,242 |
|
18 |
% |
|
|
3,114,817 |
|
21 |
% |
|
|
1,268,099 |
|
7 |
% |
|
|
1,277,190 |
|
9 |
% |
Total |
|
16,515,074 |
|
97 |
% |
|
|
14,140,591 |
|
97 |
% |
|
|
471,348 |
|
3 |
% |
|
|
425,525 |
|
3 |
% |
Consolidated revenues |
$ |
16,986,422 |
|
100 |
% |
|
$ |
14,566,116 |
|
100 |
% |
EMCOR GROUP, INC.
|
|||||||||||||
|
(Unaudited) |
||||||||||||
|
For the quarters ended December 31, |
||||||||||||
|
2025 |
|
% of Segment Revenues |
|
2024 |
|
% of Segment Revenues |
||||||
Operating income (loss): |
|
|
|
|
|
|
|
||||||
|
$ |
173,051 |
|
|
12.7 |
% |
|
$ |
147,902 |
|
|
15.8 |
% |
|
|
250,545 |
|
|
12.9 |
% |
|
|
220,622 |
|
|
13.3 |
% |
|
|
41,334 |
|
|
5.4 |
% |
|
|
40,860 |
|
|
5.4 |
% |
|
|
12,365 |
|
|
3.6 |
% |
|
|
10,209 |
|
|
3.3 |
% |
Total |
|
477,295 |
|
|
10.8 |
% |
|
|
419,593 |
|
|
11.5 |
% |
|
|
(6 |
) |
|
N/M |
|
|
|
4,834 |
|
|
4.5 |
% |
Corporate administration |
|
(48,411 |
) |
|
|
|
|
(35,863 |
) |
|
|
||
Gain on sale of |
|
144,876 |
|
|
|
|
|
— |
|
|
|
||
Consolidated operating income |
|
573,754 |
|
|
12.7 |
% |
|
|
388,564 |
|
|
10.3 |
% |
Other items: |
|
|
|
|
|
|
|
||||||
Net periodic pension income |
|
46 |
|
|
|
|
|
224 |
|
|
|
||
Interest income, net |
|
4,010 |
|
|
|
|
|
9,666 |
|
|
|
||
Income before income taxes |
$ |
577,810 |
|
|
|
|
$ |
398,454 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
|
For the years ended December 31, |
||||||||||||
|
2025 |
|
% of Segment Revenues |
|
2024 |
|
% of Segment Revnues |
||||||
Operating income (loss): |
|
|
|
|
|
|
|
||||||
|
$ |
611,952 |
|
|
12.1 |
% |
|
$ |
447,186 |
|
|
13.4 |
% |
|
|
905,325 |
|
|
12.8 |
% |
|
|
799,613 |
|
|
12.5 |
% |
|
|
187,192 |
|
|
6.0 |
% |
|
|
176,720 |
|
|
5.7 |
% |
|
|
24,998 |
|
|
2.0 |
% |
|
|
44,213 |
|
|
3.5 |
% |
Total |
|
1,729,467 |
|
|
10.5 |
% |
|
|
1,467,732 |
|
|
10.4 |
% |
|
|
20,969 |
|
|
4.4 |
% |
|
|
21,485 |
|
|
5.0 |
% |
Corporate administration |
|
(181,894 |
) |
|
|
|
|
(144,354 |
) |
|
|
||
Gain on sale of |
|
144,876 |
|
|
|
|
|
— |
|
|
|
||
Consolidated operating income |
|
1,713,418 |
|
|
10.1 |
% |
|
|
1,344,863 |
|
|
9.2 |
% |
Other items: |
|
|
|
|
|
|
|
||||||
Net periodic pension income |
|
211 |
|
|
|
|
|
894 |
|
|
|
||
Interest income, net |
|
7,995 |
|
|
|
|
|
31,625 |
|
|
|
||
Income before income taxes |
$ |
1,721,624 |
|
|
|
|
$ |
1,377,382 |
|
|
|
||
EMCOR GROUP, INC.
|
|||||||||||||
The following table provides a reconciliation between organic revenue growth, a non-GAAP measure, and total revenue growth for the quarter and year ended December 31, 2025. |
|||||||||||||
|
For the quarter ended December 31, 2025 |
|
For the year ended December 31, 2025 |
||||||||||
|
$ |
|
% |
|
$ |
|
% |
||||||
GAAP revenue growth |
$ |
743,102 |
|
|
19.7 |
% |
|
$ |
2,420,306 |
|
|
16.6 |
% |
Incremental revenues from acquisitions |
|
(385,990 |
) |
|
(10.2 |
)% |
|
|
(1,273,815 |
) |
|
(8.7 |
)% |
Organic revenue growth, a non-GAAP measure |
$ |
357,112 |
|
|
9.5 |
% |
|
$ |
1,146,491 |
|
|
7.9 |
% |
EMCOR GROUP, INC.
|
|||||||||||||
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 and year ended December 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 quarters ended December 31, |
|
For the years ended December 31, |
||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||
GAAP operating income |
$ |
573,754 |
|
|
$ |
388,564 |
|
$ |
1,713,418 |
|
|
$ |
1,344,863 |
Transaction expenses related to the acquisition of Miller Electric |
|
— |
|
|
|
— |
|
|
9,353 |
|
|
|
— |
Transaction expenses related to the sale of |
|
10,675 |
|
|
|
— |
|
|
10,675 |
|
|
|
— |
Gain on sale of |
|
(144,876 |
) |
|
|
— |
|
|
(144,876 |
) |
|
|
— |
Non-GAAP operating income |
$ |
439,553 |
|
|
$ |
388,564 |
|
$ |
1,588,570 |
|
|
$ |
1,344,863 |
|
For the quarters ended December 31, |
|
For the years ended December 31, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
GAAP operating margin |
12.7 |
% |
|
10.3 |
% |
|
10.1 |
% |
|
9.2 |
% |
Transaction expenses related to the acquisition of Miller Electric |
— |
% |
|
— |
% |
|
0.1 |
% |
|
— |
% |
Transaction expenses related to the sale of |
0.2 |
% |
|
— |
% |
|
0.1 |
% |
|
— |
% |
Gain on sale of |
(3.2 |
)% |
|
— |
% |
|
(0.9 |
)% |
|
— |
% |
Non-GAAP operating margin |
9.7 |
% |
|
10.3 |
% |
|
9.4 |
% |
|
9.2 |
% |
|
For the quarters ended December 31, |
|
For the years ended December 31, |
||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||
GAAP net income |
$ |
434,607 |
|
|
$ |
292,161 |
|
$ |
1,272,817 |
|
|
$ |
1,007,145 |
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 |
) |
|
|
— |
Transaction expenses related to the sale of |
|
10,675 |
|
|
|
— |
|
|
10,675 |
|
|
|
— |
Tax effect of transaction expenses related to the sale of |
|
(2,798 |
) |
|
|
— |
|
|
(2,798 |
) |
|
|
— |
Gain on sale of |
|
(144,876 |
) |
|
|
— |
|
|
(144,876 |
) |
|
|
— |
Tax effect of gain on sale of |
|
25,142 |
|
|
|
— |
|
|
25,142 |
|
|
|
— |
Non-GAAP net income |
$ |
322,750 |
|
|
$ |
292,161 |
|
$ |
1,167,903 |
|
|
$ |
1,007,145 |
|
For the quarters ended December 31, |
|
For the years ended December 31, |
||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||
GAAP diluted earnings per common share |
$ |
9.68 |
|
|
$ |
6.32 |
|
$ |
28.19 |
|
|
$ |
21.52 |
Transaction expenses related to the acquisition of Miller Electric |
|
— |
|
|
|
— |
|
|
0.21 |
|
|
|
— |
Tax effect of transaction expenses related to the acquisition of Miller Electric |
|
— |
|
|
|
— |
|
|
(0.05 |
) |
|
|
— |
Transaction expenses related to the sale of |
|
0.24 |
|
|
|
— |
|
|
0.24 |
|
|
|
— |
Tax effect of transaction expenses related to the sale of |
|
(0.06 |
) |
|
|
— |
|
|
(0.06 |
) |
|
|
— |
Gain on sale of |
|
(3.23 |
) |
|
|
— |
|
|
(3.21 |
) |
|
|
— |
Tax effect of gain on sale of |
|
0.56 |
|
|
|
— |
|
|
0.56 |
|
|
|
— |
Non-GAAP diluted earnings per common share |
$ |
7.19 |
|
|
$ |
6.32 |
|
$ |
25.87 |
|
|
$ |
21.52 |
_________________ |
|||||||||||||
Amounts presented in this table may not foot due to rounding. |
|||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260226702092/en/
Lucas Sullivan
Director
Financial Planning & Analysis
(203) 849-7938
FTI Consulting, Inc.
Investors: Blake Mueller
(718) 578-3706
Source: EMCOR Group, Inc.
