EMCOR Group (EME) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record revenues of $4.63 billion, up 19.7% year-over-year, with organic growth of 16.8% and broad-based demand across all segments and sectors.

• Operating income reached $404 million (8.7% margin), and diluted EPS rose 30% to $6.84, reflecting operational excellence and customer confidence.

• Remaining performance obligations (RPOs) grew to a record $15.62 billion, up 32.9% year-over-year and $2.37 billion from year-end, providing strong visibility.

• Strong execution and momentum across construction, services, and key sectors such as data centers, institutional, healthcare, and industrial markets.

• Balance sheet remains strong and liquid, supporting organic growth, M&A, and shareholder returns.

Financial highlights

• Electrical construction revenue grew 33.1% year-over-year to $1.45 billion (12.1% margin); mechanical construction revenue increased 28.9% to $2.03 billion (10.9% margin).

• Building services revenue rose 4% to $772.6 million (5.2% margin), led by mechanical services and automation.

• Industrial services revenue increased 6.4% to $381.8 million (3.3% margin), with operating income up 89.1%.

• Gross profit was $864 million (18.7% margin), and SG&A was $460.1 million (9.9% of revenue), down as a percentage year-over-year.

• Cash and cash equivalents at quarter-end were $916 million, with working capital at $1.25 billion.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $18.5–$19.25 billion; diluted EPS guidance increased to $28.25–$29.75.

• Operating margin guidance maintained at 9.0%–9.4%, reflecting strong RPOs and robust demand.

• Expectation to generate operating cash flow at least equivalent to net income or 80–85% of operating income for the year.

• Customer investments in AI, digital transformation, and infrastructure drive activity in Network & Communications.

• Management expects continued strong demand and growth across most market sectors.