EME
IndustrialsEmcor
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XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.8B | $5.5B | $5.1B | $5.6B | $6.3B | $6.4B | $6.4B | $6.7B | $7.6B | $7.7B | $8.1B | $9.2B | $8.8B | $9.9B | $11.1B | $12.6B | $14.6B | $17.0B | +16.6% |
| Gross Profit | $886.7M | $824.9M | $719.5M | $733.9M | $806.4M | $813.1M | $907.2M | $944.5M | $1.0B | $1.1B | $1.2B | $1.4B | $1.4B | $1.5B | $1.6B | $2.1B | $2.8B | $3.3B | +18.7% |
| Gross Margin | 13.1% | 14.9% | 14.1% | 13.1% | 12.7% | 12.7% | 14.1% | 14.1% | 13.7% | 14.9% | 14.8% | 14.8% | 15.9% | 15.2% | 14.5% | 16.6% | 19.0% | 19.3% | +0.3pp |
| Operating Income | $302.6M | $262.4M | -$28.7M | $210.8M | $250.0M | $210.3M | $289.9M | $287.1M | $308.5M | $330.6M | $403.1M | $460.9M | $256.8M | $530.8M | $564.9M | $875.8M | $1.3B | $1.7B | +27.4% |
| Operating Margin | 4.5% | 4.7% | -0.6% | 3.8% | 3.9% | 3.3% | 4.5% | 4.3% | 4.1% | 4.3% | 5.0% | 5.0% | 2.9% | 5.4% | 5.1% | 7.0% | 9.2% | 10.1% | +0.9pp |
| Net Income | $182.2M | $160.8M | -$86.7M | $130.8M | $146.6M | $123.8M | $168.7M | $172.3M | $181.9M | $227.2M | $283.5M | $325.1M | $132.9M | $383.5M | $406.1M | $633.0M | $1.0B | $1.3B | +26.4% |
| Net Margin | 2.7% | 2.9% | -1.7% | 2.3% | 2.3% | 1.9% | 2.6% | 2.6% | 2.4% | 3.0% | 3.5% | 3.5% | 1.5% | 3.9% | 3.7% | 5.0% | 6.9% | 7.5% | +0.6pp |
| Free Cash Flow | $297.5M | $335.0M | $49.3M | $119.8M | $146.5M | $114.6M | $208.6M | $231.2M | $224.9M | $331.4M | $227.5M | $307.3M | $758.4M | $282.6M | $448.6M | $821.3M | $1.3B | $1.2B | -10.8% |
| FCF Margin | 4.4% | 6.0% | 1.0% | 2.1% | 2.3% | 1.8% | 3.2% | 3.4% | 3.0% | 4.3% | 2.8% | 3.3% | 8.6% | 2.9% | 4.1% | 6.5% | 9.2% | 7.0% | -2.1pp |
| EPS (Diluted) | $2.71 | $2.38 | $-1.31 | $1.91 | $2.16 | $1.82 | $2.52 | $2.72 | $2.97 | $3.82 | $4.85 | $5.75 | $2.40 | $7.06 | $8.10 | $13.31 | $21.52 | $28.19 | +31.0% |
1. THE BIG PICTURE
Emcor is successfully repositioning itself from a general specialty contractor into an essential partner for the high-tech economy, specifically targeting the "increased complexity" required by AI, data centers, and cloud computing (10-K Item 1). While the construction industry is traditionally cyclical, Emcor’s record $13.25 billion in remaining performance obligations suggests it has secured a multi-year runway that may decouple its performance from broader economic fluctuations (8-K).
2. WHERE THE RISKS HIT HARDEST
Emcor’s primary competitive edge—its technical expertise in sophisticated systems—is directly threatened by its reliance on fixed-price contracts, which represent a "significant portion" of its revenue (10-K Item 1A). If the complexity of AI-driven projects leads to unforeseen labor or material costs, the "fixed" nature of these bids turns a high-tech advantage into a margin-eroding liability. Furthermore, Emcor’s "safety culture"—a core differentiator that is "significantly better than industry averages"—is at risk from its decentralized structure and a massive 44,000-person workforce (10-K Item 1). Maintaining consistent execution and safety standards across hundreds of local sites is an ongoing operational challenge that could be compromised by the current "labor shortages" and "increased wage rates" cited by management (10-K Item 1A).
3. WHAT THE NUMBERS SAY TOGETHER
While Emcor’s 19.7% quarterly revenue growth and record backlog signal robust demand, its 9.3% operating margin remains in the bottom tier of its peer group, trailing leaders like Trane (19.3%) and Ingersoll Rand (15.0%) (XBRL). This margin gap persists despite Emcor’s technical specialization, confirming management’s admission that "relatively few barriers exist to prevent entry" into its core markets (10-K Item 1). However, the recent $868.6 million acquisition of Miller Electric and the divestiture of UK operations indicate a strategic shift toward higher-margin domestic building automation and fire protection (10-Q). Short interest is low at 2.6% of the float, suggesting the market is not currently betting against this transition (Yahoo Finance).
4. IS IT WORTH IT AT THIS PRICE?
At 23.0x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Emcor trades at a "11% discount to the 25.8x peer median" (Peer Benchmarking). This discount is notable because Emcor’s 16.6% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth is significantly higher than peers like Trane (+7.5%) or Carrier (-3.3%). At this valuation, the market is pricing in ~6.4% long-term growth (CAPM analysis). This hurdle appears achievable given Emcor's 2.1% buyback yield and its net cash position of $557.6 million, which provides a buffer that peers like Quanta Services ($4.9B net debt) lack (XBRL). The primary factor that could invalidate this price is "government spending volatility," specifically a failure to fund legislation like the CHIPS Act, which supports the high-tech projects Emcor is currently prioritizing (10-K Item 1A).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if operating margins fail to reach the guided 9.0%–9.4% range for 2026, which would suggest that inflationary pressures on fixed-price contracts are outweighing the benefits of the UK divestiture (8-K).
- Constructive if Remaining Performance Obligations (RPOs) continue to grow beyond $13.25 billion, signaling that the "broad-based demand" for data center and semiconductor infrastructure has multi-year longevity (8-K).
- Cautious if transaction expenses for future acquisitions exceed the $20 million seen in 2025, indicating that Emcor is overpaying for growth in an increasingly competitive M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies market (8-K).
6. BOTTOM LINE
Structural Advantage: Massive scale and technical specialization in high-complexity systems (BIM and VDC) supported by a net-cash balance sheet that allows for aggressive acquisitions.
Bottom Line: Emcor is a high-growth infrastructure play currently valued at a discount to slower-moving peers, making it an attractive way to play the AI build-out without the typical "tech" premium.
1. Top 5 Material Risks
- Economic Sensitivity: Emcor’s revenue and profitability are vulnerable to economic slowdowns, as clients frequently delay or cancel capital spending—particularly in the more profitable private sector—during periods of high interest rates or credit market tightening.
- Fixed-Price Contract Exposure: A significant portion of Emcor’s revenue comes from fixed-price or guaranteed maximum price contracts; if actual costs for labor, materials, or equipment exceed original estimates due to inflation or supply chain issues, Emcor faces reduced profitability or project losses.
- Labor and Workforce Management: Emcor depends on a workforce of approximately 44,000 employees; labor shortages, increased wage rates, or the inability to retain skilled personnel can impair Emcor’s ability to grow or maintain productivity.
- Competitive Bidding Pressures: Emcor operates in a highly competitive industry with low barriers to entry; competitors with lower overhead structures can exert downward pressure on contract prices and profit margins, forcing Emcor to accept less favorable terms.
- Government Spending Volatility: A portion of Emcor’s revenue is derived from government agencies; delays in appropriations, failure to fund legislation like the CHIPS and Science Act, or government shutdowns can lead to the cancellation or disruption of projects.
2. Company-Specific Risks
- Decentralized Operational Risk: Emcor’s decentralized business model places significant decision-making power with local management, which may result in a slower response to external market conditions or problems compared to a centralized organization.
- Surety Bond Dependence: Emcor’s ability to compete for and perform on certain projects is contingent upon obtaining payment and performance bonds; if surety companies limit bonding capacity or increase costs, Emcor may be unable to bid on or execute specific contracts.
- Self-Insurance Liabilities: Emcor is effectively self-insured for a substantial number of claims through a captive insurance subsidiary; unexpected increases in the severity or frequency of claims, or medical cost inflation, could render current accruals inadequate and necessitate additional charges.
- Multiemployer Pension Exposure: Emcor contributes to approximately 200 multiemployer pension plans; under the Employee Retirement Income Security Act, Emcor could be liable for a proportionate share of a plan’s underfunding if it ceases contributions or significantly reduces the number of employees covered.
3. Regulatory/Legal Risks
- Environmental Liability: Emcor faces potential remediation costs and fines related to the handling of hazardous materials (such as asbestos, lead paint, and PFAS) and the maintenance of fuel storage tanks at its own facilities or client sites.
- Anti-Bribery and Sanctions Compliance: Emcor is subject to the Foreign Corrupt Practices Act (FCPA) and various international sanction regimes; violations by employees or agents could result in substantial legal expenses, civil and criminal penalties, and reputational damage.
- Data Privacy Regulations: Emcor must comply with evolving data privacy laws, including the California Consumer Privacy Act and the California Privacy Rights Act; failure to comply or a data breach could result in significant penalties and increased compliance costs.
- Government Audit Risk: As a government contractor, Emcor is subject to routine audits of its cost structures and contract performance; findings of improper cost allocation can lead to non-reimbursement, requirements to refund previously paid amounts, or debarment from future government work.
4. Financial Impact Map
Economic Downturns → Revenue and Profitability → Reduced demand for private sector projects and potential for delayed or canceled capital spending. Fixed-Price Contract Cost Overruns → Gross Profit → Actual costs for labor and materials exceeding original estimates, leading to reduced margins or project losses. Labor Shortages and Wage Inflation → Operating Expenses → Increased costs to maintain a workforce of 44,000 and potential for labor under-utilization if projects are delayed. Surety Bond Availability → Revenue → Inability to compete for or work on projects that require payment and performance bonds as a condition of the award. Self-Insurance Claims → Operating Expenses → Adjustments to insurance liabilities in the period that claims experience exceeds historical estimates or accruals.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
EMCOR Projects 2026 Revenue $17.75B–$18.5B, EPS $27.25–$29.25 Amid Record $13.25B Backlog
- ▸Record remaining performance obligations $13.25B, +31% YoY
- ▸2026 revenue guidance $17.75B–$18.5B vs $16.99B in 2025
- ▸2026 EPS guidance $27.25–$29.25 vs $28.19 in 2025
- ▸Electrical Construction segment revenue +51.8% YoY to $5.07B
- ▸Data center projects represent 48% of electrical construction segment revenue
EMCOR Group Sets FY26 Revenue Guidance $17.75B–$18.50B, Raises Dividend 60% to $0.40
- ▸FY26 revenue guidance $17.75B–$18.50B with 9.0%–9.4% operating margin
- ▸FY26 diluted EPS guidance $27.25–$29.25
- ▸Quarterly dividend increased 60% to $0.40 per share starting Q1 2026
- ▸Equity buyback authorization expanded by $500M to total $2.0B
- ▸Analyst price targets raised to range of $814–$945
EMCOR raises quarterly dividend 60% to $0.40 per share following strong 2025 cash flow
- ▸Quarterly dividend increased 60% to $0.40 per share
- ▸2025 operating cash flow reached approximately $1.3 billion
- ▸Invested over $1 billion in acquisitions during 2025
- ▸Returned $586.3 million to shareholders via share repurchases in 2025
- ▸Cash position of $1.11 billion with conservative leverage profile
Sterling Infrastructure E-Infrastructure revenue surges 123%, initiates 40% growth guidance for 2026
- ▸Q4 E-Infrastructure revenue +123% YoY; full-year segment revenue +59% YoY
- ▸CEC Facilities Group acquisition contributed $129.1M to Q4 revenue
- ▸E-Infrastructure signed backlog +79% vs year-end 2024
- ▸Initiated 2026 E-Infrastructure revenue growth guidance of 40% or higher
- ▸Combined project pipeline of signed and unsigned work exceeds $3B
EMCOR Group reports strong 2025 results and issues upbeat 2026 guidance
- ▸Trading at $720.18 with 90-day share price return of 12.60%
- ▸P/E ratio of 25.2x vs 34.2x US construction industry average
- ▸Growth driven by data center expansion, electrification, and industrial reshoring
- ▸Market narrative suggests fair value estimate of $468.79
- ▸5-year total shareholder return of 544.93%
EMCOR FY25 Revenue $16.99B +16.6%, EPS $25.87, RPO Hits Record $13.25B
- ▸FY25 revenue $16.99B, up 16.6% YoY
- ▸Adjusted EPS $25.87, up from $21.52 in prior year
- ▸Adjusted operating margin 9.4%, up 20 basis points
- ▸Remaining Performance Obligations (RPO) $13.25B, up from $10.1B
- ▸FY26 operating margin guidance range 9.0%–9.4%