EMCOR Raises 2026 Outlook After Growth Acceleration

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter revenue reached a record $5.54 billion, up 28.8% from a year earlier, as remaining performance obligations hit $18.57 billion.

EMCOR Group, Inc. (EME) reported record third-quarter revenue of $5.54 billion, up 28.8% from $4.30 billion a year earlier, as year-over-year growth accelerated after two slower quarters.

The mechanical and electrical construction company said organic revenue, which strips out incremental acquisitions and the 2025 sale of its United Kingdom operations, rose 25.5%. That organic pace also stepped up from 19.6% in the second quarter and 16.8% in the first quarter.

Net income was $399.9 million, or $9.04 a share, compared with $295.4 million, or $6.57 a share, a year earlier. Results included a $34.0 million non-cash impairment loss on identifiable intangible assets, or $24.7 million after taxes. Excluding that charge, non-GAAP net income was $424.7 million, or $9.60 a share.

Operating income was $545.8 million, or 9.8% of revenue. GAAP operating margin compressed from 10.6% in the second quarter. Non-GAAP operating income, excluding the impairment, was $579.8 million, or 10.5% of revenue. Selling, general and administrative expenses were $528.4 million, or 9.5% of revenue, versus 10.0% a year earlier. The income tax rate was 27.2%.

Remaining performance obligations were a record $18.57 billion as of September 30, 2026, compared with $12.61 billion a year earlier. The company said the $5.96 billion year-over-year increase reflected new contract awards across most of the sectors in which it operates, with the largest RPO growth in Network and Communications as mission-critical facilities required electrical infrastructure and cooling systems. It also cited customer investment in Healthcare, Water and Wastewater, Institutional, and Manufacturing and Industrial.

United States electrical construction and facilities services revenue was $1.85 billion, or 34% of the total, with operating income of $247.0 million and a 13.3% segment margin, up from 11.3% a year earlier. United States mechanical construction and facilities services revenue was $2.55 billion, or 46% of the total, with operating income of $308.2 million and a 12.1% margin. United States building services revenue was $852.4 million, with operating income of $66.2 million. United States industrial services revenue was $287.5 million, with operating income of $5.1 million. United Kingdom building services revenue was zero after the 2025 sale, versus $136.2 million a year earlier. Corporate administration was a $46.8 million loss.

Chairman, President and Chief Executive Officer Tony Guzzi said the company delivered growth, margin performance, operating cash flow and capital allocation, and that strong revenue growth, field execution and improved SG&A leverage produced operating-margin expansion. He said EMCOR continued to outgrow the broader non-residential construction market.

Based on year-to-date momentum and near-term visibility, EMCOR raised full-year 2026 revenue guidance to $20.6 billion to $21.0 billion from $20.0 billion to $20.5 billion. Non-GAAP diluted EPS guidance rose to $34.50 to $35.50 from $32.00 to $33.25. Non-GAAP operating margin guidance moved to about 10% from 9.5% to 9.8%. Those ranges exclude the impairment loss.

The board authorized an additional $500 million for share repurchases under the existing program. Guzzi said the increase reflected the company’s financial position and commitment to capital allocation. Repurchases will be funded by operations and may occur on the open market or through privately negotiated transactions. The program has no expiration date and does not obligate the company to buy a particular amount of stock.

Cash and cash equivalents were $774.8 million at September 30, 2026. Accounts receivable were $5.53 billion. Contract liabilities were $2.97 billion. Total stockholders’ equity was $4.28 billion.