Emcor Group, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose to $4.30 billion: Revenue for the quarter totaled $4.30 billion, compared with $3.70 billion a year earlier. Source
• Diluted EPS of $6.57: Net income was $295.4 million, or $6.57 per diluted share, against $270.3 million, or $5.80, a year earlier. Source
• Quarterly operating margin eased: Operating income was $405.7 million, or 9.4% of revenues, against $363.5 million, or 9.8%, a year earlier. The release gives no cause for the change. Source
• Electrical revenue reached 30% share: United States electrical revenue was $1,285.3 million, 30% of total, against $845.0 million a year earlier. Source
• Order backlog grew by $2.82 billion: Remaining performance obligations were $12.61 billion at September 30, 2025, up from $9.79 billion a year earlier and $11.91 billion at June 30. Source
• Operating cash flow lower in nine months: Operating cash flow was $777.7 million for nine months, against $938.4 million. Changes in operating assets and liabilities used $221.7 million. Source
• Revenue guidance range narrowed: Full-year revenue guidance is $16.7 billion to $16.8 billion, against the earlier $16.4 billion to $16.9 billion. Source
• Non-GAAP EPS guidance narrowed: Non-GAAP diluted EPS guidance is $25.00 to $25.75, against the earlier $24.50 to $25.75. The high end is unchanged. Source

“Our Remaining Performance Obligations are again at an all-time high as we continue to win and earn new business across multiple sectors, geographies, and trades.”

Tony Guzzi, Chairman, President, and Chief Executive Officer

Guidance

What changed from last quarter

• New: Liabilities held for sale of $136.8 million appeared at September 30, 2025, alongside the pending sale of EMCOR UK. The June 30 balance sheet had no such line. Source

Quarter results and growth

• Revenue rose to $4.30 billion: Revenue for the quarter totaled $4.30 billion, compared with $3.70 billion a year earlier. Source
• Diluted EPS of $6.57: Net income was $295.4 million, or $6.57 per diluted share, against $270.3 million, or $5.80, a year earlier. Source
• Organic growth reconciled at 8.1%: Organic revenue growth, a non-GAAP measure, was $298.0 million, or 8.1%, in the quarter, per the company's reconciliation. Source
• Quarterly operating margin eased: Operating income was $405.7 million, or 9.4% of revenues, against $363.5 million, or 9.8%, a year earlier. The release gives no cause for the change. Source
• Nine-month growth figures cited: For the nine months, management cited revenue growth of 15.5%, a 19.2% rise in operating income, and an operating margin above 9%. Source
• Nine-month non-GAAP EPS of $18.68: Excluding $9.4 million of Miller Electric transaction costs, nine-month non-GAAP diluted EPS was $18.68. The GAAP figure was $18.53. Source

Segments and regions

• Electrical revenue reached 30% share: United States electrical revenue was $1,285.3 million, 30% of total, against $845.0 million a year earlier. Source
• Electrical margin lower year-over-year: Electrical operating income was $145.2 million, an 11.3% margin, against $119.1 million and a 14.1% margin a year earlier. Source
• Mechanical margin unchanged at 12.9%: Mechanical operating income was $229.3 million, a 12.9% margin, against $214.8 million and the same 12.9% margin a year earlier. Source
• Electrical and mechanical combined growth: Electrical and Mechanical Construction combined year-to-date revenue grew 23.3%, with a combined operating margin of 12.4%, per management. Source
• Industrial services margin higher: Industrial services operating income was $6.3 million, a 2.2% margin, against $3.3 million and a 1.1% margin a year earlier. Source
• Building services margin edged up: US building services operating income was $59.4 million, a 7.3% margin, up from a 7.0% margin a year earlier. Source

“We are executing well across numerous sectors where demand for our services persists, bolstered by long-term underlying secular trends.”

Tony Guzzi, Chairman, President, and Chief Executive Officer

Demand and order book

• Order backlog grew by $2.82 billion: Remaining performance obligations were $12.61 billion at September 30, 2025, up from $9.79 billion a year earlier and $11.91 billion at June 30. Source
• Growth led by several sectors: Most sectors grew, led by Network and Communications, Water and Wastewater, Institutional, and Manufacturing and Industrial, per management. Source
• High-Tech Manufacturing backlog declined: High-Tech Manufacturing backlog declined because certain semiconductor manufacturing construction projects were completed. Source
• Contract liabilities above year-end: Contract liabilities were $2,144.2 million at September 30, 2025, against $2,047.5 million at December 31, 2024. Source

Costs and margins

• SG&A steady at 10.0%: SG&A was $429.6 million, or 10.0% of revenues, against $371.2 million and the same 10.0% a year earlier. Nine-month SG&A was $1.25 billion, or 10.0%, against 9.7%. Source
• Gross profit higher in dollars: Gross profit was $835.3 million against $734.7 million; nine-month gross profit was $2.39 billion against $2.01 billion. Source
• Tax rate little changed: The income tax rate was 27.5% for the quarter, against 27.4% a year earlier. For nine months it was 26.7%, against 27.0%. Source
• Depreciation and amortization higher: Depreciation and amortization, including intangible amortization, was $47.8 million in the quarter against $34.5 million. Nine-month figure was $136.4 million against $98.4 million. Source
• Corporate administration cost increased: Corporate administration expense was $42.0 million in the quarter, up from $34.8 million a year earlier. Source

“As we progress to the end of the year, we remain focused on executing for our customers while delivering for our shareholders.”

Tony Guzzi, Chairman, President, and Chief Executive Officer

Capital, cash and returns

• Operating cash flow lower in nine months: Operating cash flow was $777.7 million for nine months, against $938.4 million. Changes in operating assets and liabilities used $221.7 million. Source
• Acquisition spending rose year-over-year: Payments for acquisitions, net of cash acquired, were $900.5 million for nine months against $189.2 million. Capital expenditures were $80.8 million against $57.2 million. Source
• Cash balance declined: Cash and cash equivalents were $655.1 million at September 30, 2025, against $1,339.6 million at December 31, 2024. Source
• Revolver drawn and repaid in year: Proceeds and repayments under the revolving credit facility were each $525.0 million in the nine months. Source
• Buybacks and dividends paid: Repurchases of common stock were $432.2 million for nine months, against $405.4 million. Dividends paid were $33.8 million, against $31.9 million. Source
• Quarterly dividend held at $0.25: Dividends declared were $0.25 per share in the quarter, unchanged from a year earlier. Nine-month declared dividends were $0.75, against $0.68. Source

Strategy and investment

• Miller Electric acquisition closed Q1: The Miller Electric acquisition closed in the first quarter of 2025. Nine-month transaction costs were $9.4 million pre-tax, or $6.9 million after taxes. Source
• Assets held for sale recorded: Assets held for sale were $161.2 million at September 30, 2025, against none at December 31, 2024. Source
• Goodwill and intangibles rose: Goodwill was $1,359.3 million at September 30, 2025, against $1,018.4 million at December 31, 2024. Identifiable intangibles were $1,056.9 million, against $648.2 million. Source
• Productivity credited to technology investment: Management attributes productivity and efficiency gains to organic investments in virtual design construction technologies and prefabrication capabilities. Source

Full-year 2025 guidance

• Revenue guidance range narrowed: Full-year revenue guidance is $16.7 billion to $16.8 billion, against the earlier $16.4 billion to $16.9 billion. Source
• Non-GAAP EPS guidance narrowed: Non-GAAP diluted EPS guidance is $25.00 to $25.75, against the earlier $24.50 to $25.75. The high end is unchanged. Source
• Operating margin guidance range: Non-GAAP operating margin guidance is 9.2% to 9.4%, against the earlier 9.0% to 9.4%. Source
• Guidance excludes deal-related items: Non-GAAP guidance excludes Miller Electric transaction costs, transaction costs for the pending EMCOR UK sale, and the anticipated gain on that sale. Source

Coming up, as management said on 30 October 2025

• U.K. building services sale expected in Q4: Management said guidance adjusts for an anticipated sale of the U.K. Building Services segment in the fourth quarter. Source

Figures management reported

Risks management discussed

• Operational: Management said it continues to perform on complex and challenging projects. The release gives no further detail on that risk. Source

Earlier plans management reported on

• Not stated: The release shows the July 31 ranges as previous guidance. It does not say whether earlier plans were met. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.