EMCOR Group, Inc. (EME): Results of Operations and Financial Condition
EMCOR Group, Inc. (EME) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 FOR: EMCOR GROUP, INC. News Release CONTACT: Lucas Sullivan Director Financial Planning & Analysis (203) 849-7938 FTI Consulting, Inc. Investors: Blake Mueller (718) 578-3706 EMCOR GROUP, INC. REPORTS SECOND QUARTER 2026 RESULTS Record Quarterly Revenues of $5.15 bil
How this was made
The 30-second read
Why it matters
The key tradable inputs are the record Q2 operating metrics and the raised 2026 revenue and diluted EPS guidance ranges, alongside a sharp YoY increase in remaining performance obligations.
Market read
A same-day earnings and guidance update with explicit numeric ranges typically drives immediate repricing of forward estimates and backlog-conversion expectations.
What to watch
The guidance update is broad; traders should watch for any commentary on backlog conversion, pricing discipline, and acquisition integration effects not quantified in the excerpt.
Record Quarterly Revenues of $5.15 billion, 19.8% Increase Year-over-Year; Record Second Quarter Operating Income of $547.3 million and Operating Margin of 10.6%; Record Second Quarter Diluted EPS of $9.06, 34.8% Increase Year-over-Year
Second-quarter revenue, operating income, operating margin, diluted EPS, and remaining performance obligations were reported at record levels, while the Company increased its full-year revenue, operating-margin, and diluted-EPS guidance ranges.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Full-Year 2026 Revenues | $18.50 billion – $19.25 billion | Not reported | n/a |
| Full-Year 2026 Operating Margin | 9.0% – 9.4% | Not reported | n/a |
| Full-Year 2026 Diluted EPS | $28.25 – $29.75 | Not reported | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $5.15 billion | – | 19.8% |
| Organic revenue growthother | 19.6% | – | – |
| Cost of salesGAAP | $ 4,132,513 | – | – |
| Gross profitGAAP | $ 1,022,379 | – | – |
| Selling, general and administrative expensesGAAP | $475.0 million | – | – |
| Selling, general and administrative expenses as a percentage of revenuesGAAP | 9.2% of revenues | – | – |
| Operating incomeGAAP | $547.3 million | – | – |
| Operating marginGAAP | 10.6% of revenues | – | – |
| Depreciation and amortization expenseGAAP | $54.3 million | – | – |
| Interest income (expense), netGAAP | $ 4,322 | – | – |
| Income before income taxesGAAP | $ 551,662 | – | – |
| Income tax provisionGAAP | $ 147,968 | – | – |
| Income tax rateGAAP | 26.8% | – | – |
| Net incomeGAAP | $403.7 million | – | – |
| Diluted earnings per shareGAAP | $9.06 per diluted share | – | 34.8% |
| Remaining performance obligationsother | $17.14 billion | – | 43.9% |
| Remaining performance obligations increaseother | $5.23 billion year-over-year | – | – |
| Revenues, first six monthsGAAP | $9.78 billion | – | 19.7% |
| Organic revenue growth, first six monthsother | 18.3% | – | – |
| Net income, first six monthsGAAP | $709.2 million | – | – |
| Diluted earnings per share, first six monthsGAAP | $15.89 per diluted share | – | – |
| Operating income, first six monthsGAAP | $951.2 million | – | – |
| Operating margin, first six monthsGAAP | 9.7% of revenues | – | – |
| Non-GAAP operating income, first six months of 2025non-GAAP | $743.3 million | – | – |
| Non-GAAP operating margin, first six months of 2025non-GAAP | 9.1% of revenues | – | – |
| Non-GAAP net income, first six months of 2025non-GAAP | $549.8 million | – | – |
| Non-GAAP diluted earnings per share, first six months of 2025non-GAAP | $12.11 per diluted share | – | – |
Full-Year 2026 outlook
- Revenue$20.00 billion – $20.50 billion
- NoteOperating Margin 9.5% – 9.8%
- NoteDiluted EPS $32.00 – $33.25
What drove it
- Second-quarter revenues increased on an organic basis when adjusting for incremental acquisition contribution and the impact of the sale of the Company's United Kingdom operations.
- The Company cited strong performance across each reportable segment.
- RPO growth was most significant in Network and Communications, Water and Wastewater, Institutional, and Healthcare.
- Management cited sustained demand, new-business wins across multiple customers, geographies, and skilled trades, and expansion of scope with existing customers.
- Management cited pricing discipline, selective project opportunities, and execution on mission-critical projects.
Concerns
- The filing identifies scarcity of skilled labor, productivity challenges, supply-chain disruptions, inflationary trends, fluctuations in energy costs, tariffs, interest-rate changes, and unfavorable business mix as risks.
- The filing notes that general economic conditions, weakness in sectors served, competition, surety-bonding availability, legal matters, and government regulations could affect results.
What to watch
- Progress against full-year revenue guidance of $20.00 billion – $20.50 billion.
- Delivery of full-year operating margin guidance of 9.5% – 9.8%.
- Delivery of full-year diluted EPS guidance of $32.00 – $33.25.
- Sustained conversion of record $17.14 billion remaining performance obligations into revenue.
- Demand trends in Network and Communications, Water and Wastewater, Institutional, and Healthcare.
Analysis
EMCOR reported record second-quarter revenues of $5.15 billion, up 19.8% from $4.30 billion. Organic revenue increased by 19.6% after adjusting for incremental acquisition contribution and the impact of the sale of the Company's United Kingdom operations. The first six months also showed broad growth, with revenues of $9.78 billion, up 19.7%, and organic growth of 18.3%.
Profitability improved materially. Second-quarter operating income was $547.3 million, compared with $415.2 million, and operating margin rose to 10.6% of revenues from 9.6% of revenues. Selling, general and administrative expenses were 9.2% of revenues compared with 9.7% of revenues. Net income increased to $403.7 million from $302.2 million, and diluted earnings per share increased 34.8% to $9.06 per diluted share.
The order book strengthened further. Remaining performance obligations reached a record $17.14 billion, compared with $11.91 billion, an increase of $5.23 billion year-over-year. The Company identified Network and Communications, Water and Wastewater, Institutional, and Healthcare as the sectors with the most significant RPO growth. Management attributed the backlog strength to sustained demand and wins across customers, geographies, and skilled trades.
For the first six months, operating income was $951.2 million and operating margin was 9.7% of revenues, compared with $734.0 million and 9.0% of revenues. First-half net income was $709.2 million, or $15.89 per diluted share. The prior-year first half included $9.4 million of transaction related costs associated with the Miller Electric Company acquisition, or $6.9 million after taxes.
Management increased its full-year outlook. Revenue guidance increased to $20.00 billion – $20.50 billion from $18.50 billion – $19.25 billion, operating-margin guidance increased to 9.5% – 9.8% from 9.0% – 9.4%, and diluted-EPS guidance increased to $32.00 – $33.25 from $28.25 – $29.75. Key reported factors to monitor are the conversion of record RPOs, continuation of pricing discipline and project selection, and the operating risks identified in the filing, including skilled-labor scarcity, productivity, supply chain, inflation, and mix.
Management, verbatim
We had an exceptional second quarter, growing revenues nearly 20% and earning an impressive 10.6% operating margin. Our results were driven by strong performance across each of our reportable segments, which demonstrates the consistent execution, discipline, and customer focus that have defined EMCOR's success over many years. Our Remaining Performance Obligations are once again at a record level reflecting sustained demand across several key market sectors and our success in winning new business across multiple customers, geographies, and skilled trades.
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR
We have performed extremely well during the first half of 2026, executing across numerous sectors where demand for our services persists. These outstanding results reflect our ability to complete complex projects across multiple geographies and trades, expand scope with existing customers, and consistently deliver on mission-critical projects.
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR
Not in the filing
stated, not guessed- Segment revenue, segment profit, and segment-level growth metrics were not included in the provided filing text.
- Gross margin was not reported.
- Basic earnings per share was not available because the provided filing text ends at the beginning of the basic earnings per share line.
- Cash, debt, operating cash flow, free cash flow, capital expenditures, share repurchases, dividends, and other capital-return figures were not included in the provided filing text.
- Full-year 2026 actual results were not reported; therefore, prior full-year guidance cannot be assessed against actual full-year results.
- Full-year guidance for gross margin, operating expenses, and tax rate was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K attaching EMCOR’s Q2 2026 results press release (Item 2.02) with updated full-year guidance.
Ticker impact
EMCOR reported Q2 2026 record revenues of $5.15B, operating income of $547.3M, and raised full-year 2026 revenue and EPS guidance ranges.
Bias toward upside for the next earnings revisions cycle, with volatility possible around how much of the RPO strength converts to revenue and margin.
The filing includes both hard Q2 results and an explicit upward guidance update for 2026, plus a large YoY increase in remaining performance obligations to $17.14B.
Market effects
Signals strength in mechanical and electrical construction demand, potentially supportive for peers’ order-book sentiment.
No specific regional breakdown provided beyond multi-geography execution.
Limited direct global read-through; UK operations impact is mentioned only as an adjustment.
Counterpoint
RPO growth may not fully translate into near-term revenue or margins if project timing slips or costs rise.
Key entities
- companyEMCOR Group, Inc.
Mechanical and electrical construction services provider reporting Q2 2026 results and raising 2026 guidance.
- executiveTony Guzzi
Chairman, President, and CEO commenting on record performance obligations and execution.
