- Fourth Quarter Revenue Growth Generated $4.5 billion in Q4 2025, a 19.7% year-over-year increase, with adjusted earnings per share rising to $7.19, up 13.8% from 2024.
- Full-Year Record Performance Achieved $16.99 billion in annual revenues, $1.71 billion operating income (10.1% margin), and $25.87 adjusted diluted EPS, a 20% YoY increase.
- Robust RPOs and Market Momentum Booked $13.25 billion in recurring project orders (RPOs) by year-end 2025, up 17.6% YoY, with network/communications RPOs surging 60% to $4.46 billion.
- Segment Highlights U.S. Electrical Construction revenues hit $1.36 billion (45.8% growth), driven by data center projects; U.S. Mechanical Construction grew 17%, with data centers contributing 80% of YOY growth.
- 2026 Guidance Projects $17.75–$18.5 billion in 2026 revenue and $27.25–$29.25 adjusted diluted EPS, targeting 4.5–9% revenue growth (7.5–12% excluding UK headwinds) and maintaining a 9.4% operating margin range.
Segment Performance
The company's construction segments performed well, with U.S. Electrical Construction revenues reaching a quarterly record of $1.36 billion, driven by strong organic growth and the acquisition of Miller Electric. U.S. Mechanical Construction revenues also increased 17%, establishing a new quarterly record. The data center segment was a significant contributor to this growth, with electrical work growing faster than mechanical. The company's fire life safety business, with its national scope and design-build capabilities, also performed well.
Guidance and Outlook
EMCOR expects to earn revenues of $17.75 billion to $18.5 billion in 2026, with diluted EPS ranging from $27.25 to $29.25. The company is guided by its expectation of continued productivity gains, with revenue growing 2 to 3 times faster than headcount. The operating margin guidance is 9.4% +/- 40 basis points, reflecting a replicable record margin. The company's strong balance sheet and cash conversion ability position it well for continued organic and acquisition growth.
Valuation
With a P/E Ratio of 25.7 and an EV/EBITDA of 16.17, EMCOR's valuation appears reasonable considering its strong growth prospects and profitability. The company's ROE of 39.04% and ROIC of 25.82% indicate a high level of efficiency and return on capital. The dividend yield is relatively low at 0.16%, but the free cash flow yield is 3.67%, suggesting a decent return for investors.
Mergers and Acquisitions
EMCOR's M&A pipeline is strong, with a focus on acquiring businesses in the mechanical and electrical segments. The company is looking to acquire companies with a strong operational culture, particularly in mechanical service and building controls. The pipeline is diverse, with deal sizes ranging from $2 million to $865 million. As stated by Anthony Guzzi, "the pipeline is as strong or stronger than it was at the end of 2020."