Key Highlights

  • Revenue of USD 5.54 billion rose 28.8% and topped the consensus estimate of USD 5.19 billion, setting a quarterly record.
  • GAAP diluted EPS of USD 9.04 compared with a consensus estimate of USD 8.37 and USD 6.57 a year earlier.
  • Remaining performance obligations reached a record USD 18.57 billion, versus USD 12.61 billion at September 30, 2025.
  • Operating income rose 34.5% to USD 545.8 million, with Margin of 9.8% after a USD 34.0 million Impairment charge.

EMCOR Group, Inc. (NYSE:EME) reported third quarter 2026 Revenue of USD 5.54 billion, up 28.8% from USD 4.30 billion and above a consensus estimate of USD 5.19 billion. GAAP Diluted Earnings per Share were USD 9.04, compared with a consensus estimate of USD 8.37 and USD 6.57 in the prior year quarter. Net Income rose to USD 399.9 million from USD 295.4 million, helped in part by a lower share count after repurchases. Acquisitions added USD 313.3 million of incremental revenue.

Electrical and Mechanical Segments Lead the Growth

Revenue increased in every reportable segment. United States electrical construction and facilities services grew to USD 1.85 billion from USD 1.29 billion, with the largest gain in network and communications work tied to Data Center projects. Mechanical construction and facilities services rose to USD 2.55 billion from USD 1.78 billion, also led by data center Demand and added cooling scope. Building services reached USD 852.4 million, and industrial services was steady at USD 287.5 million.

Electrical segment Operating Margin widened to 13.3% from 11.3%, while mechanical margin eased to 12.1% from 12.9%. Gross margin improved to 20.0% from 19.4%, and selling, general and administrative expenses fell as a share of revenue as the company leveraged its overhead. Operating Income of USD 545.8 million included a USD 34.0 million non cash impairment on intangible assets in building services; excluding it, operating income rose USD 174.1 million and margin gained 110 basis points.

Backlog, Cash and Capital Allocation

Remaining performance obligations of USD 18.57 billion compare with USD 13.25 billion at December 31, 2025. Acquisitions account for USD 500.3 million of the increase. Of the total, USD 14.36 billion falls within one year and USD 4.21 billion beyond. Mechanical construction holds 53% of the balance and electrical construction 39%.

Operating cash flow for the nine months was USD 1.09 billion, up from USD 777.7 million, and cash stood at USD 774.8 million. The company acquired nine businesses for USD 809.9 million of upfront consideration in the first nine months. It repurchased 0.2 million shares for USD 189.9 million in the quarter and 0.6 million shares for USD 455.2 million year to date, with USD 225.4 million of authorization remaining. Dividends declared were USD 0.40 per share, up from USD 0.25. Available capacity stood at USD 1.23 billion under a USD 1.30 billion revolving Credit facility.

Data Points to Follow in the Next Report

Several figures give a read on the next quarter. Remaining performance obligations of USD 18.57 billion, with USD 14.36 billion tied to work within one year, show how much revenue is already contracted. The data center share of electrical and mechanical revenue is a second marker, given that both segments cited it as the largest growth source.

Margins are a third. Mechanical operating margin slipped 80 basis points to 12.1% while electrical rose 200 basis points, and the 9.8% consolidated figure includes the USD 34.0 million impairment. Capital deployment is a fourth item, with USD 225.4 million left on the repurchase authorization and USD 0.40 per share declared as the quarterly dividend.