EMCOR Group reported a strong third quarter with record revenues and diluted EPS, driven by broad-based growth across its diverse service sectors and effective execution on complex projects. The company also achieved record remaining performance obligations, indicating a robust future demand for its services and supporting a positive outlook.
Record third quarter revenues of $4.30 billion, a 16.4% increase year-over-year.
positiveRecord third quarter diluted EPS of $6.57, a 13.3% increase year-over-year.
positiveRecord remaining performance obligations (RPOs) of $12.61 billion, up nearly 29% year-over-year, indicating strong future revenue visibility.
positiveNarrows full-year 2025 revenue guidance range to $16.7 billion - $16.8 billion and non-GAAP diluted EPS guidance to $25.00 - $25.75.
positiveConsolidated operating income for the nine months ended September 30, 2025, increased 19.2% year-over-year to $1.14 billion.
positiveCombined year-to-date revenue growth of 23.3% and a combined operating margin of 12.4% in Electrical and Mechanical Construction segments.
positiveOperating margin for Q3 2025 was 9.4% of revenues, a decrease from 9.8% in the prior year's third quarter.
attentionSelling, general and administrative expenses increased to $429.6 million, or 10.0% of revenues, compared to $371.2 million, or 10.0% of revenues, for the third quarter of 2024, indicating a slight increase in SG&A as a percentage of revenue.
attentionNet cash provided by operating activities for the nine months ended September 30, 2025, decreased to $777.7 million from $938.4 million in the prior year.
negativePayments for acquisitions of businesses, net of cash acquired, were $900.5 million for the nine months ended September 30, 2025, a significant increase from $189.2 million in the prior year, impacting cash flow.
attentionInventories increased to $105.4 million as of September 30, 2025, from $95.7 million as of December 31, 2024.
attentionThe United States industrial services segment saw a decrease in operating income to $12.6 million for the nine months ended September 30, 2025, from $34.0 million in the prior year, and its operating margin compressed from 3.5% to 1.4%.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
United States mechanical construction and facilities services | $1779279.0B | $1662211.0B | +7.0% | 41.4% |
United States electrical construction and facilities services | $1285269.0B | $845030.0B | +52.1% | 29.9% |
United States building services | $813879.0B | $796923.0B | +2.1% | 18.9% |
United States industrial services | $286914.0B | $286410.0B | +0.2% | 6.7% |
United Kingdom building services | $136188.0B | $106350.0B | +28.1% | 3.2% |
| Total Revenue | $4301529.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We had an outstanding third quarter, with revenue growth of 16.4% and an exceptional 9.4% operating margin.
Our results were driven by strong execution within the diverse sectors we serve as we continue to perform on complex and challenging projects.
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.
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