EMCOR Group (EME) investor relations material

Executive summary

• Record Q3 revenue of $5.54B rose 28.8% YoY, including 25.5% organic growth; GAAP operating income reached a third-quarter record $545.8M.

• Record RPOs of $18.57B rose 47.2% YoY, reflecting broad demand led by data centers and network and communications work.

• FY 2026 revenue and non-GAAP diluted EPS guidance increased; an additional $500M share-repurchase authorization was approved.

Financial highlights

• Q3 gross profit was $1.11B, up 32.7%; gross margin expanded 60 bps to 20.0%, while SG&A was 9.5% of revenue versus 10.0% a year earlier.

• GAAP operating income was $545.8M, up 34.5%, with a 9.8% margin; excluding the $34M non-cash impairment, operating income was $579.8M and margin was 10.5%.

• GAAP diluted EPS was $9.04, up 37.6%; non-GAAP diluted EPS was $9.60, up 46.1%.

• 9M revenue rose 22.9% to $15.32B; GAAP operating income was $1.50B and diluted EPS was $24.93. Non-GAAP operating income was $1.53B and non-GAAP diluted EPS was $25.48.

• 9M operating cash flow was $1.09B versus $777.7M; Q3 operating cash flow was $796.7M.

Outlook and guidance

• FY 2026 revenue guidance increased to $20.6B–$21.0B from $20.0B–$20.5B; non-GAAP operating margin guidance is ~10%, up from 9.5%–9.8%.

• FY 2026 non-GAAP diluted EPS guidance increased to $34.50–$35.50 from $32.00–$33.25; guidance reflects sustained demand and execution on large projects.

• Full-year operating cash flow expectation was $1.5B–$1.7B; management expects adjusted operating margin of at least the 10% achieved through 9M.

• Mechanical margin is expected to remain near current levels in the near term; the rolling 12–24-month margin range cited was 12%–12.5%.