EMCOR Group (EME) investor relations material

Business Overview and Market Positioning

• Operates as a project-oriented company with a strong maintenance element, executing over 12,000 projects annually across diverse sectors including data centers, high-tech manufacturing, healthcare, and water/wastewater.

• Largest employer of skilled trade labor in the U.S., with a workforce of 30,000–48,400, primarily unionized, and a focus on building field leaders through unique training programs.

• Maintains a balanced portfolio with four main segments: electrical construction, mechanical construction, building services, and industrial services, with significant organic growth in electrical and mechanical segments.

• Positioned at the intersection of megatrends: data centers, reshoring, sustainability, and energy transition, with a resilient, flexible model enabling pivoting to high-growth sectors.

• Recent strategic exit from the U.K. business to focus on U.S. core markets, emphasizing capital allocation and shareholder returns.

Labor Strategy and Workforce Development

• Differentiates through a values-driven culture and leadership with deep field experience, fostering strong recruitment and retention of skilled tradespeople.

• Offers weekly pay, industry-leading safety standards, and clear career advancement paths, supported by a stair-step training program for field leadership.

• Union labor is viewed as a strength, providing flexibility, better training, and easier workforce management, especially for large projects.

• Maintains flexibility to scale workforce up or down with minimal severance costs, leveraging union halls and variable labor pools.

• Leading safety record: TRIR less than half the industry average for 16 consecutive years.

Financial Performance and Margin Drivers

• Q3 2025 revenues rose 16.4% YoY to $4.3B; nine-month revenues up 15.5% to $12.5B, with 2024 revenue at $14.6B.

• Margins have improved to near 10%, with operating income margin for nine months at 9.1% and non-GAAP margin at 9.2%, driven by strong demand, execution, and investments in prefabrication, VDC, and BIM technologies.

• Revenue growth has outpaced headcount growth by a factor of three, reflecting efficiency gains from technology and process improvements.

• Maintains a capital-light model with consistent ROIC above 20% and high free cash flow conversion.

• Record remaining performance obligations (RPOs) of $12.6B as of 9/30/25, up nearly 30% year-over-year.