EMCOR Group (EME) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual revenues of $16.99 billion for 2025 (up 19.7% in Q4 and 16.6% year-over-year), with strong adjusted EPS growth and robust margins, driven by broad-based sector demand and execution on complex projects.

• Mechanical and Electrical construction segments maintained operating margins above historical averages, with Q4 adjusted operating margin at 9.7% and full-year at 9.4%.

• Completed the largest acquisition in company history (Miller Electric), divested U.K. business, and executed nine other acquisitions, enhancing flexibility for organic investment.

• Record Remaining Performance Obligations (RPOs) of $13.25 billion, up 31% year-over-year, supporting future growth.

• Returned over $580 million to shareholders via share repurchases and increased dividend to $0.40 per share.

Financial highlights

• Q4 2025 revenues rose 19.7% year-over-year to $4.51 billion; adjusted EPS: $7.19 (+13.8%); Q4 operating income: $573.8 million (12.7% margin).

• Full-year adjusted EPS: $25.87 (+20% year-over-year); operating cash flow: $1.3 billion; full-year operating income: $1.71 billion (10.1% margin).

• Q4 gross profit: $891.2 million (19.7% margin); full-year gross profit: $3.28 billion (19.3% margin).

• Maintained $1.1 billion cash on hand at year-end; working capital: $1.07 billion.

• Q4 gain on UK operations sale: $144.9 million ($119.7 million after tax).

Outlook and guidance

• 2026 revenue guidance: $17.75–$18.5 billion; EPS: $27.25–$29.25; operating margin: 9–9.4%.

• Outlook supported by record RPOs and a healthy project pipeline across resilient sectors, including data centers, high-tech manufacturing, water/wastewater, industrial, and healthcare.

• Guidance assumes high confidence at low-to-mid range, with upside dependent on margin execution and new bookings.

• Macro uncertainties include trade policy, supply chain, interest rates, legislation, and global conflicts.