EMCOR Group, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenues reached a record $5.54 billion, a 28.8% year-over-year increase compared to $4.30 billion in Q3 2025; organic revenue growth was 25.5%.
• Net income for Q3 2026 was $399.9 million ($9.04 per diluted share), up from $295.4 million ($6.57 per diluted share) in Q3 2025.
• Non-GAAP net income for Q3 2026 was $424.7 million ($9.60 per diluted share), a 46.1% increase year-over-year.
• Operating income for Q3 2026 was $545.8 million (9.8% margin), compared to $405.7 million (9.4% margin) in Q3 2025.
• Non-GAAP operating income for Q3 2026 was $579.8 million (10.5% margin).
• First nine months 2026 revenues totaled $15.32 billion, a 22.9% increase year-over-year; organic growth was 20.8%.
• Net income for the first nine months of 2026 was $1.11 billion ($24.93 per diluted share), compared to $838.2 million ($18.53 per diluted share) in the same period in 2025.
• Non-GAAP net income for the first nine months of 2026 was $1.13 billion ($25.48 per diluted share).
• Operating income for the first nine months of 2026 was $1.50 billion (9.8% margin), compared to $1.14 billion (9.1% margin) in 2025.
• Non-GAAP operating income for the first nine months of 2026 was $1.53 billion (10.0% margin).
• Selling, general and administrative expenses were $528.4 million (9.5% of revenue) in Q3 2026, compared to $429.6 million (10.0% of revenue) in Q3 2025.
• Income tax rate was 27.2% for Q3 2026 and 26.6% for the first nine months of 2026.
• Remaining performance obligations (RPOs) as of September 30, 2026, were a record $18.57 billion, a 47.2% increase year-over-year from $12.61 billion.
• Cash and cash equivalents were $774.8 million as of September 30, 2026, down from $1.11 billion as of December 31, 2025.
• Net cash provided by operating activities for the first nine months of 2026 was $1.09 billion, compared to $777.7 million in 2025.
• Net cash used in investing activities for the first nine months of 2026 was $891.9 million, primarily due to $797.4 million in payments for acquisitions.
• Net cash used in financing activities for the first nine months of 2026 was $531.9 million, including $456.5 million in repurchases of common stock and $53.3 million in dividends paid.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance increased to $20.6 billion – $21.0 billion from the previous range of $20.0 billion – $20.5 billion.
• Full-year 2026 non-GAAP operating margin guidance increased to approximately 10% from 9.5% – 9.8%.
• Full-year 2026 non-GAAP diluted EPS guidance increased to $34.50 – $35.50 from $32.00 – $33.25.
• Management cited strong revenue growth, excellent field execution, and improved SG&A leverage as drivers for margin expansion.
• Management noted the company continues to outgrow the broader non-residential construction market, reinforcing demand depth.

Business Segments and Product Lines:

• United States electrical construction and facilities services generated $1.85 billion in Q3 2026 (34% of total revenue) with an operating margin of 13.3%.
• United States mechanical construction and facilities services generated $2.55 billion in Q3 2026 (46% of total revenue) with an operating margin of 12.1%.
• United States building services generated $852.4 million in Q3 2026 (15% of total revenue) with an operating margin of 7.8%.
• United States industrial services generated $287.5 million in Q3 2026 (5% of total revenue) with an operating margin of 1.8%.
• The United Kingdom building services segment contributed $0 in Q3 2026 following the sale of operations in 2025.
• Significant RPO growth occurred in the Network and Communications market sector due to demand for electrical infrastructure and cooling systems.
• Customer investments also drove growth in Healthcare, Water and Wastewater, Institutional, and Manufacturing and Industrial sectors.

Market and Competitive Landscape:

• The company reported outgrowing the broader non-residential construction market.
• Demand is driven by mission-critical facilities requiring substantial electrical infrastructure and increasingly sophisticated cooling systems.
• The company benefits from a broad range of customer investments across large end markets.

Risks and Challenges:

• Forward-looking statements note risks including adverse economic conditions, political developments, and changes in specific markets.
• Potential challenges include scarcity of skilled labor, productivity challenges, and supply chain disruptions affecting material availability and pricing.
• Risks also include inflationary trends, interest rate fluctuations, lack of surety bonding availability, and increased competition.
• Legal proceedings, claims, and government regulations or permitting requirements are cited as potential risks.

Management Commentary and Tone:

• Tony Guzzi, Chairman, President, and CEO, described the quarter as delivering "exceptional growth, margin performance, operating cash flow, and capital allocation."
• Management highlighted "discipline and precision" in field execution on large, technically complex projects.
• The tone reflected confidence in long-term demand trends and the company's ability to create shareholder value.
• Management attributed strong performance to differentiated technical capabilities and a strong operating model.

Other Key Points:

• The Board of Directors authorized an additional $500 million for the share repurchase program.
• Repurchases are funded by operations and may be executed on the open market or via privately negotiated transactions.
• The share repurchase program has no expiration date and may be suspended or discontinued at any time.
• Dividends declared per common share were $0.40 in Q3 2026, up from $0.25 in Q3 2025.
• The company recorded a non-cash impairment loss on identifiable intangible assets of $34.0 million in Q3 2026.
• The company sold its United Kingdom operations in 2025, impacting year-over-year organic growth calculations.