EMCOR Group, Inc. Reports Record Third Quarter 2026 Results

EMCOR Group, Inc. Reports Record Third Quarter 2026 Results NORWALK, Conn.--( BUSINESS WIRE)--EMCOR Group, Inc. (NYSE: EME) today reported results for the quarter ended September 30, 2026.

Third Quarter 2026 Results of Operations

For the third quarter of 2026, revenues totaled a quarterly record of $5.54 billion, an increase of 28.8%, compared to revenues of $4.30 billion for the third 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 in 2025, third quarter revenues increased by 25.5%.

Net income for the third quarter of 2026 was $399.9 million, or $9.04 per diluted share, compared to net income of $295.4 million, or $6.57 per diluted share, for the third quarter of 2025. Net income for the third quarter of 2026 included a non-cash impairment loss on identifiable intangible assets of $34.0 million, or $24.7 million after taxes. Excluding such impairment, non-GAAP net income for the third quarter of 2026 was $424.7 million, or $9.60 per diluted share.

Operating income for the third quarter of 2026 was $545.8 million, or 9.8% of revenues, compared to operating income of $405.7 million, or 9.4% of revenues, for the third quarter of 2025. Excluding the previously referenced impairment loss, non-GAAP operating income for the third quarter of 2026 was $579.8 million, or 10.5% of revenues. Operating income included depreciation and amortization expense (inclusive of amortization of identifiable intangible assets) of $57.3 million and $47.8 million for the third quarter of 2026 and 2025, respectively.

Refer to the attached tables for a reconciliation of organic 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 third quarter of 2026 totaled $528.4 million, or 9.5% of revenues, compared to $429.6 million, or 10.0% of revenues, for the third quarter of 2025.

The Company's income tax rate for the third quarter of 2026 was 27.2%, compared to 27.5% for the third quarter of 2025.

Remaining performance obligations (“RPOs”) as of September 30, 2026 were a record $18.57 billion, compared to $12.61 billion as of September 30, 2025, an increase of $5.96 billion year-over-year, due to new contract awards across the majority of the sectors in which the Company operates. The most significant RPO growth occurred within the Network and Communications market sector as mission critical facilities continue to require substantial electrical infrastructure and increasingly sophisticated cooling systems. The Company also benefited from a broad range of customer investments across other large end markets, including the Healthcare, Water and Wastewater, Institutional, and Manufacturing and Industrial sectors.

Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented, “EMCOR delivered another quarter of exceptional growth, margin performance, operating cash flow, and capital allocation. Our strong revenue growth, coupled with excellent field execution and improved SG&A leverage, resulted in meaningful expansion of our operating margin. We continued to outgrow the broader non-residential construction market, reinforcing the depth of demand for our services."

First Nine Months 2026 Results of Operations

Revenues for the first nine months of 2026 totaled $15.32 billion, an increase of 22.9%, compared to revenues of $12.47 billion for the first nine months 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 in 2025, revenues for the first nine months of 2026 increased by 20.8%.

Net income for the first nine months of 2026 was $1.11 billion, or $24.93 per diluted share, compared to net income of $838.2 million, or $18.53 per diluted share, for the first nine months of 2025. Net income for the first nine months of 2026 included a non-cash impairment loss on identifiable intangible assets of $34.0 million, or $24.7 million after taxes. Net income for the first nine months 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 items, non-GAAP net income for the first nine months of 2026 was $1.13 billion, or $25.48 per diluted share, and non-GAAP net income for the first nine months of 2025 was $845.2 million, or $18.68 per diluted share.

Operating income for the first nine months of 2026 was $1.50 billion, or 9.8% of revenues, compared to operating income of $1.14 billion, or 9.1% of revenues, for the first nine months of 2025. Excluding the previously referenced impairment loss in 2026 and transaction costs in 2025, non-GAAP operating income for the first nine months of 2026 was $1.53 billion, or 10.0% of revenues, and non-GAAP operating income for the first nine months of 2025 was $1.15 billion, or 9.2% of revenues. Operating income included depreciation and amortization expense (inclusive of amortization of identifiable intangible assets) of $164.1 million and $136.4 million for the first nine months of 2026 and 2025, respectively.

Selling, general and administrative expenses totaled $1.46 billion, or 9.6% of revenues, for the first nine months of 2026, compared to $1.25 billion, or 10.0% of revenues, for the first nine months of 2025.

The Company's income tax rate was 26.6% for the first nine months of 2026, compared to 26.7% for the first nine months of 2025.

Mr. Guzzi continued, “We performed extremely well during the first nine months of 2026, demonstrating the value of our differentiated technical capabilities and strength of our operating model. Our field leaders continued to exhibit discipline and precision while executing some of the industry's largest and most technically complex projects. The expertise of our foremen, superintendents, project managers, and operating leaders drives safe, reliable execution and supports repeat business with our customers. As we close 2026, we remain well-positioned to capitalize on the long-term demand trends supporting our business, while creating further value for our shareholders."

Full-Year 2026 Guidance

Based on the momentum the Company has experienced year-to-date, along with near-term visibility, EMCOR now expects the following for full year 2026:

Current Guidance (10/29/26)

Previous Guidance (7/30/26)

Revenues

$20.6 billion – $21.0 billion

$20.0 billion – $20.5 billion

Non-GAAP Operating Margin*

~10%

9.5% – 9.8%

Non-GAAP Diluted EPS*

$34.50 – $35.50

$32.00 – $33.25

* Excludes impairment loss on identifiable intangible assets.

Increases Share Repurchase Program

The Company also announced that its Board of Directors has authorized an additional $500 million for the purchase of shares of its outstanding common stock under its existing share repurchase program.

Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, remarked, “The increase in our share repurchase authorization reflects our strong financial position, confidence in the long-term prospects of our business, and commitment to balanced and disciplined capital allocation. Our capital allocation strategy supports long-term value creation and has provided the foundation for our compounding record of success."

Repurchases under the program will be funded by the Company’s operations. Shares will be repurchased from time to time on the open market or through privately negotiated transactions at the Company’s discretion, subject to market conditions, and in accordance with applicable regulatory requirements. The share repurchase program has no expiration date and does not obligate the Company to acquire any particular amount of common stock and may be suspended, recommenced, or discontinued at any time or from time to time without prior notice.

Third Quarter 2026 Earnings Conference Call Information

EMCOR Group's third quarter conference call will be broadcast live via the internet today, Thursday, October 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 October 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, government regulations, permitting requirements, moratoriums, or other governmental actions; 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.

In addition, forecast non-GAAP diluted earnings per share and non-GAAP operating margin for full-year 2026 are forward-looking non-GAAP financial measures. The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP on a forward-looking basis because such reconciliations are not accessible with reasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of adjustments such as impairments that impact comparability and the periods in which such items may be recognized.

EMCOR GROUP, INC.

FINANCIAL HIGHLIGHTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share information)

(Unaudited)

For the quarters ended

September 30,

For the nine months ended

September 30,

2026

2025

2026

2025

Revenues

5,541,520

4,301,529

15,324,645

12,473,301

Cost of sales

4,433,302

3,466,216

12,330,098

10,081,499

Gross profit

1,108,218

835,313

2,994,547

2,391,802

Selling, general and administrative expenses

528,426

429,617

1,463,570

1,252,138

Impairment loss on identifiable intangible assets

34,000

—

34,000

—

Operating income

545,792

405,696

1,496,977

1,139,664

Net periodic pension income

—

165

Interest income, net

3,766

1,838

14,315

3,985

Income before income taxes

549,558

407,590

1,511,292

1,143,814

Income tax provision

149,628

112,217

402,184

305,604

Net income

399,930

295,373

1,109,108

838,210

Basic earnings per common share

9.06

6.59

25.00

18.59

Diluted earnings per common share

9.04

6.57

24.93

18.53

Weighted average shares of common stock outstanding:

Basic

44,118,989

44,794,790

44,364,696

45,078,735

Diluted

44,245,706

44,968,308

44,491,534

45,238,610

Dividends declared per common share

0.40

0.25

1.20

0.75

EMCOR GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

September 30,

2026

December 31,

2025

ASSETS

Current assets:

Cash and cash equivalents

774,752

1,111,968

Accounts receivable, net

5,529,343

4,241,177

Contract assets

465,548

337,717

Inventories

194,549

126,252

Prepaid expenses and other

106,274

120,231

Total current assets

7,070,466

5,937,345

Property, plant, and equipment, net

303,334

253,277

Operating lease right-of-use assets

526,027

439,029

Goodwill

1,711,905

1,412,414

Identifiable intangible assets, net

1,441,074

1,108,828

Other assets

183,354

140,506

Total assets

11,236,160

9,291,399

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

1,411,866

1,227,428

Contract liabilities

2,968,666

2,327,360

Accrued payroll and benefits

1,103,452

870,154

Other accrued expenses and liabilities

450,865

340,785

Operating lease liabilities, current

110,543

99,213

Total current liabilities

6,045,392

4,864,940

Operating lease liabilities, long-term

449,971

368,996

Other long-term obligations

463,870

382,482

Total liabilities

6,959,233

5,616,418

Equity:

Total EMCOR Group, Inc. stockholders’ equity

4,275,890

3,673,944

Noncontrolling interests

1,037

Total equity

4,276,927

3,674,981

Total liabilities and equity

11,236,160

9,291,399

EMCOR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2026 and 2025

(In thousands) (Unaudited)

2026

2025

Cash flows - operating activities:

Net income

1,109,108

838,210

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

Depreciation and amortization

57,962

49,426

Amortization of identifiable intangible assets

106,164

86,967

Provision for credit losses

6,183

5,402

Deferred income taxes

(19,236

)

8,930

Excess tax benefits from share-based compensation

(8,011

)

(4,250

)

Non-cash expense for impairment of identifiable intangible assets

34,000

—

Non-cash share-based compensation expense

19,695

16,742

Other reconciling items

1,392

(2,038

)

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

(220,626

)

(221,730

)

Net cash provided by operating activities

1,086,631

777,659

Cash flows - investing activities:

Payments for acquisitions of businesses, net of cash acquired

(797,375

)

(900,496

)

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

2,469

3,608

Purchases of property, plant, and equipment

(97,014

)

(80,831

)

Net cash used in investing activities

(891,920

)

(977,719

)

Cash flows - financing activities:

Proceeds from revolving credit facility

150,000

525,000

Repayments of revolving credit facility

(150,000

)

(525,000

)

Repayments of finance lease liabilities

(2,016

)

(2,082

)

Dividends paid to stockholders

(53,251

)

(33,832

)

Repurchases of common stock

(456,501

)

(432,165

)

Taxes paid related to net share settlements of equity awards

(18,401

)

(14,054

)

Payments for contingent consideration arrangements

(1,758

)

(12,038

)

Distributions to noncontrolling interests

—

(856

)

Net cash used in financing activities

(531,927

)

(495,027

)

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

—

11,009

Decrease in cash, cash equivalents, and restricted cash

(337,216

)

(684,078

)

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)

774,752

656,317

_________

EMCOR GROUP, INC.

SEGMENT INFORMATION

(In thousands, except for percentages) (Unaudited)

For the quarters ended September 30,

2026

% of

Total

2025

% of

Total

Revenues from unrelated entities:

United States electrical construction and facilities services

1,854,963

1,285,269

United States mechanical construction and facilities services

2,546,679

1,779,279

United States building services

852,369

813,879

United States industrial services

287,509

286,914

Total United States operations

5,541,520

100

4,165,341

United Kingdom building services

—

136,188

Consolidated revenues

5,541,520

100

4,301,529

100

For the nine months ended September 30,

2026

% of

Total

2025

% of

Total

Revenues from unrelated entities:

United States electrical construction and facilities services

4,964,878

3,713,360

United States mechanical construction and facilities services

6,873,893

5,107,139

United States building services

2,462,724

2,349,761

United States industrial services

1,023,150

926,988

Total United States operations

15,324,645

100

12,097,248

United Kingdom building services

—

376,053

Consolidated revenues

15,324,645

100

12,473,301

100

EMCOR GROUP, INC.

SEGMENT INFORMATION

(In thousands, except for percentages) (Unaudited)

For the quarters ended September 30,

2026

% of

Segment Revenues

2025

% of Segment Revenues

Operating income (loss):

United States electrical construction and facilities services

247,003

13.3

145,200

11.3

United States mechanical construction and facilities services

308,238

12.1

229,296

12.9

United States building services

66,193

7.8

59,390

7.3

United States industrial services

5,120

1.8

6,292

2.2

Total United States operations

626,554

11.3

440,178

10.6

United Kingdom building services

—

7,563

5.6

Corporate administration

(46,762

)

—

(42,045

)

—

Impairment loss on identifiable intangible assets

(34,000

)

—

Consolidated operating income

545,792

9.8

405,696

9.4

Other items:

Net periodic pension income

—

Interest income, net

3,766

1,838

Income before income taxes

549,558

407,590

For the nine months ended September 30,

2026

% of

Segment Revenues

2025

% of Segment Revenues

Operating income (loss):

United States electrical construction and facilities services

652,901

13.2

438,901

11.8

United States mechanical construction and facilities services

816,520

11.9

654,780

12.8

United States building services

170,017

6.9

145,858

6.2

United States industrial services

27,499

2.7

12,633

1.4

Total United States operations

1,666,937

10.9

1,252,172

10.4

United Kingdom building services

—

20,975

5.6

Corporate administration

(135,960

)

—

(133,483

)

—

Impairment loss on identifiable intangible assets

(34,000

)

—

Consolidated operating income

1,496,977

9.8

1,139,664

9.1

Other items:

Net periodic pension income

—

165

Interest income, net

14,315

3,985

Income before income taxes

1,511,292

1,143,814

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 and nine months ended September 30, 2026.

For the quarter ended

September 30, 2026

For the nine months ended

September 30, 2026

GAAP revenue growth

1,239,991

28.8

2,851,344

22.9

Incremental revenues from acquisitions

(313,275

)

(7.3

(716,608

)

(5.7

Impact of lost revenues resulting from sale of

United Kingdom operations

136,188

4.0

376,053

3.6

Organic revenue growth, a non-GAAP measure

1,062,904

25.5

2,510,789

20.8

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 and nine months ended September 30, 2026 and 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

September 30,

For the nine months ended

September 30,

2026

2025

2026

2025

GAAP operating income

545,792

405,696

1,496,977

1,139,664

Impairment loss on identifiable intangible assets

34,000

—

34,000

—

Transaction expenses related to the acquisition of Miller Electric

—

9,353

Non-GAAP operating income

579,792

405,696

1,530,977

1,149,017

For the quarter ended

September 30,

For the nine months ended

September 30,

2026

2025

2026

2025

GAAP operating margin

9.8

9.4

9.8

9.1

Impairment loss on identifiable intangible assets

0.6

—

0.2

—

Transaction expenses related to the acquisition of Miller Electric

—

0.1

Non-GAAP operating margin

10.5

9.4

10.0

9.2

________________________

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

For the quarter ended

September 30,

For the nine months ended

September 30,

2026

2025

2026

2025

GAAP net income

399,930

295,373

1,109,108

838,210

Impairment loss on identifiable intangible assets

34,000

—

34,000

—

Tax effect of impairment loss on identifiable intangible assets

(9,257

)

—

(9,257

)

—

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

424,673

295,373

1,133,851

845,153

For the quarter ended

September 30,

For the nine months ended

September 30,

2026

2025

2026

2025

GAAP diluted earnings per common share

9.04

6.57

24.93

18.53

Impairment loss on identifiable intangible assets

0.77

—

0.76

—

Tax effect of impairment loss on identifiable intangible assets

(0.21

)

—

(0.21

)

—

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

9.60

6.57

25.48

18.68