EMCOR 2025-26: Record $17B Year, FY26 Revenue $17.75-$18.5B
FY25 revenue $16.99B (+17%); Op income $1.67B (+24%); NI $1.27B (+26%); EPS $28.19 (+31%). Adj op margin 9.4% record; adj diluted EPS $25.87 record. Q4 revenue $4.5B (+19.7%); adj EPS $7.19 (+13.8%); adj op income $440M (+13.1%, margin 9.7%). Divested UK business + acquired Miller Electric. FY26 guide: revenue $17.75B-$18.5B; diluted EPS $27.25-$29.25; op margin 9-9.4%.
Key takeaways
- Record year on revenue + margin + EPS. FY25 revenue $17B (+17%); adj op margin 9.4% (record); adj diluted EPS $25.87 (record). EMCOR is one of the cleanest plays on US data center + reindustrialization construction services.
- Q4 strong with revenue +19.7% / adj EPS +13.8%. Adj op income $440M (+13.1%) with 9.7% margin. Sustained pricing + project mix discipline.
- Major M&A activity. Divested UK business (capital reallocation); acquired Miller Electric + others. Continued bolt-on consolidation in mechanical + electrical contracting.
- FY26 guide: revenue $17.75-$18.5B / diluted EPS $27.25-$29.25. Implied +5-9% revenue / +5-13% EPS. Op margin 9-9.4% target. Mgmt: confidence in low end absent major economic events; potential for higher end with good execution.
- Mechanical + electrical construction segments held strong margins. Multi-decade demand cycle from data center + reshoring + IIJA + grid modernization continues.
Business
EMCOR Group is a leading US mechanical + electrical construction + facility services contractor. Five reporting segments:
- US Construction (Mechanical) (~30% of revenue): Mechanical contracting — HVAC + plumbing + process piping for commercial + industrial + healthcare + data center customers.
- US Construction (Electrical) (~25% of revenue): Electrical contracting — power + lighting + low voltage + comms + controls for similar customer set.
- US Building Services (~25% of revenue): Facility maintenance + retrofit + service contracts for buildings.
- US Industrial Services (~10% of revenue): Plant maintenance + services for industrial customers (refining, chemical, paper).
- United Kingdom + Other (~10% of revenue): UK operations being divested; international footprint shrinking.
Strategic positioning: among the largest mechanical + electrical contractors in US. Direct beneficiary of data center construction + reshoring + grid + healthcare + commercial mega-projects.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 12.58 | 14.57 | 16.99 |
| Gross profit ($B) | 2.09 | 2.77 | 3.33 |
| Op income ($B) | 0.88 | 1.34 | 1.67 |
| Op margin | 7.0% | 9.2% | 9.8% |
| EBITDA ($B) | 1.01 | 1.51 | 1.99 |
| Net income ($M) | 633 | 1,007 | 1,270 |
| Diluted EPS ($) | 13.31 | 21.52 | 28.19 |
| Adj diluted EPS ($) | $14.49 | $19.62 | $25.87 |
| FCF ($B) | 0.82 | 1.33 | 1.19 |
| Capex ($M) | -78 | -75 | -113 |
| Total debt ($M) | 345 | 349 | 844 |
| Dividends ($M) | -33 | -43 | -45 |
| Buyback ($M) | -128 | -490 | -586 |
The earnings print: Revenue +17%, op margin +60bp to 9.8%, EPS +31%. FCF $1.19B held strong.
Total debt jumped to $844M (+$495M YoY) — funding M&A.
Capital allocation
- Capex: $-113M FY25 (0.7% of revenue). Capital-light service business.
- Dividends: $-45M FY25 (+5% YoY).
- Buybacks: $-586M FY25 (+20% YoY). Continued material capital return.
- M&A: Miller Electric + others acquired; UK divested.
- Debt: $844M (+$495M YoY) post-acquisitions.
FY26 outlook (per Q4 2025 call, 2026-02-26)
| FY26 guide | Range |
|---|---|
| Revenue | $17.75B-$18.5B |
| Diluted EPS | $27.25-$29.25 |
| Operating margin | 9.0%-9.4% |
| Free cash flow | (implied continued strong) |
Mgmt explicitly: "confidence in low end absent major economic events; potential for higher end with good execution + margin." +5-9% revenue / +5-13% EPS implied.
Key risks
- Commercial construction cycle: Recession would compress data center + reshoring backlog.
- Skilled labor: Electrician + plumber + technician shortages limit capacity expansion.
- M&A integration: Miller Electric + other deals; integration cost / margin risk.
- Commodity inputs: Copper + steel + electrical components; pass-through with lag.
- Tariff regime: Component imports affected.
- UK divestiture timing: Working capital cycle.
Bottom line
EMCOR FY25 is the record year. Revenue +17%, op margin +60bp to 9.8% record, adj EPS $25.87 record. FY26 guide $17.75-$18.5B / EPS $27.25-$29.25 / op margin 9-9.4%. Risks are construction cycle + skilled labor + M&A integration. Quality M&E contractor with multi-decade tailwinds + capital return.
Citations
- EMCOR Group Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- EMCOR Q4 2025 earnings call, 2026-02-26 — Q4 revenue $4.5B (+19.7%); adj EPS $7.19 (+13.8%); adj op income $440M (+13.1%, 9.7% margin); FY record revenue ~$17B / op margin 9.4% / adj EPS $25.87; UK business divested; Miller Electric acquired; FY26 guide ($17.75-$18.5B / EPS $27.25-$29.25 / op margin 9-9.4%).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).