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Emcor Group, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 26 February 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Key takeaways

  • Quarterly revenue rose 19.7%: Fourth-quarter revenues were $4.51 billion against $3.77 billion a year earlier. Organic revenue growth was 9.5%, with acquisitions contributing the rest. Source
  • Diluted EPS reached $9.68: Diluted EPS was $9.68 against $6.32 a year earlier. Net income included a $144.9 million pre-tax gain on the United Kingdom sale and $10.7 million of transaction expenses. Source
  • Non-GAAP diluted EPS was $7.19: Excluding the United Kingdom gain and transaction expenses, non-GAAP diluted EPS was $7.19 for the quarter. Source
  • Electrical and mechanical full-year growth: The two segments reported combined full-year revenue growth of 24.4% and operating income growth of 21.7%, with a combined operating margin of 12.5%. Source
  • Backlog reached a record $13.25 billion: Remaining performance obligations were $13.25 billion at December 31, 2025, up $3.15 billion from $10.10 billion a year earlier. Source
  • Non-GAAP operating margin was 9.7%: Non-GAAP operating margin was 9.7% for the quarter against 10.3% a year earlier. GAAP operating margin was 12.7%, including the United Kingdom gain. Source
  • Share repurchases reached $586.3 million: Repurchases of common stock were $586.3 million for 2025 against $489.8 million in 2024. Dividends paid were $45.0 million. Source
  • United Kingdom operations sold for $256.6 million: Net proceeds from the sale of the United Kingdom operations were $256.6 million. The sale produced a $144.9 million pre-tax gain. Source

“We had an excellent close to the year with our fourth quarter results, including strong revenue growth and exceptional operating performance.”

Tony Guzzi, Chairman, President, and Chief Executive Officer

Guidance

AreaPeriodFigureAgainst last quarter
Revenues Sourcefull year 2026$17.75 billion - $18.50 billionNew
Operating margin Sourcefull year 20269.0% - 9.4%New
Diluted EPS Sourcefull year 2026$27.25 - $29.25New

What changed from last quarter

  • New guidance: The release gives full-year 2026 guidance for revenues, operating margin and diluted EPS. The documents contain no earlier 2026 figures. Source
  • Ended: The United Kingdom operations were sold in the fourth quarter. The third-quarter release had described the sale as pending. Source

Results and growth drivers

  • Quarterly revenue rose 19.7%: Fourth-quarter revenues were $4.51 billion against $3.77 billion a year earlier. Organic revenue growth was 9.5%, with acquisitions contributing the rest. Source
  • Diluted EPS reached $9.68: Diluted EPS was $9.68 against $6.32 a year earlier. Net income included a $144.9 million pre-tax gain on the United Kingdom sale and $10.7 million of transaction expenses. Source
  • Non-GAAP diluted EPS was $7.19: Excluding the United Kingdom gain and transaction expenses, non-GAAP diluted EPS was $7.19 for the quarter. Source
  • Full-year revenue reached $16.99 billion: Full-year 2025 revenues were $16.99 billion, up 16.6%, with organic growth of 7.9%. Full-year diluted EPS was $28.19. Source

Segments and regions

  • US electrical revenue rose to $1.36 billion: US electrical revenue was $1.36 billion, or 30% of total revenue, against $933.2 million, or 25%, a year earlier. Source
  • Mechanical revenue was 43% of total: US mechanical revenue was $1.94 billion, or 43% of the quarter's total, against $1.66 billion, or 44%, a year earlier. Source
  • US building services revenue up slightly: US building services revenue was $772.5 million against $755.6 million. Operating margin was 5.4% in both quarters. Source
  • Electrical margin fell to 12.7%: US electrical operating income was $173.1 million, or 12.7% of segment revenue, against 15.8% a year earlier. Source
  • Electrical and mechanical full-year growth: The two segments reported combined full-year revenue growth of 24.4% and operating income growth of 21.7%, with a combined operating margin of 12.5%. Source
  • Corporate administration costs rose: Corporate administration cost $48.4 million in the quarter against $35.9 million. For the year it was $181.9 million against $144.4 million. 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

Backlog and sector demand

  • Backlog reached a record $13.25 billion: Remaining performance obligations were $13.25 billion at December 31, 2025, up $3.15 billion from $10.10 billion a year earlier. Source
  • Increases spread across most sectors: Remaining performance obligations rose in most sectors, with the largest gains in Network and Communications, Institutional, Water and Wastewater, Hospitality and Entertainment, and Manufacturing and Industrial. Source
  • High-tech backlog declined on completions: High-Tech Manufacturing backlog fell as the company completed certain semiconductor manufacturing construction projects. Source
  • Management cites pipeline demand: Management said the pipeline reflects broad-based demand for the company's services and supports its view of 2026. Source

Costs, margins and tax

  • Non-GAAP operating margin was 9.7%: Non-GAAP operating margin was 9.7% for the quarter against 10.3% a year earlier. GAAP operating margin was 12.7%, including the United Kingdom gain. Source
  • SG&A rose to 10.2% of revenue: SG&A totaled $462.3 million, or 10.2% of revenue, against $368.5 million, or 9.8%, a year earlier. Source
  • Full-year non-GAAP margin was 9.4%: For the full year, non-GAAP operating margin was 9.4% against 9.2% in 2024. GAAP operating margin was 10.1%. Source
  • Income tax rate eased: The income tax rate was 24.8% for the quarter against 26.7% a year earlier, and 26.1% for the year against 26.9%. Source
  • Depreciation and amortization rose: Quarterly depreciation and amortization was $50.0 million against $35.3 million. Full-year amounts were $186.4 million against $133.7 million. Source

“Looking ahead to 2026, we have a solid foundation across diverse geographies and sectors and we begin the year with a strong mix of work within our record Remaining Performance Obligations.”

Tony Guzzi, Chairman, President, and Chief Executive Officer

Capital, cash and shareholder returns

  • Operating cash flow fell to $1.30 billion: Cash from operations was $1.30 billion for 2025 against $1.41 billion. Changes in operating assets and liabilities were a $17.8 million outflow, against a $252.7 million inflow in 2024. Source
  • Capital spending rose to $112.8 million: Purchases of property, plant, and equipment were $112.8 million for 2025 against $75.0 million in 2024. Source
  • Acquisition payments reached $1.02 billion: Payments for acquisitions, net of cash acquired, were $1.02 billion in 2025 against $228.2 million in 2024. Source
  • Share repurchases reached $586.3 million: Repurchases of common stock were $586.3 million for 2025 against $489.8 million in 2024. Dividends paid were $45.0 million. Source
  • Dividend per share rose to $1.00: Dividends declared per share were $1.00 for 2025 against $0.93. The quarterly dividend was $0.25 in both quarters. Source
  • Year-end cash was $1.11 billion: Cash and cash equivalents were $1.11 billion at December 31, 2025, against $1.34 billion a year earlier. Source

Strategy, portfolio and acquisitions

  • United Kingdom operations sold for $256.6 million: Net proceeds from the sale of the United Kingdom operations were $256.6 million. The sale produced a $144.9 million pre-tax gain. Source
  • Acquisitions expand existing capabilities: Management tied recent acquisitions to expanding and complementing existing capabilities to better serve customers. Source
  • Productivity gains from prefabrication: Management credits organic investment in construction technologies and prefabrication with higher productivity and efficiency. Source

Coming up, as management said on 26 February 2026

  • Strategic investment from sale proceeds: Management said the sale of the United Kingdom operations gives further room for strategic investment. Source

Figures management reported

FigureReported
Remaining performance obligations Source$13.25 billion, up 31.2% year over year

Earlier plans management reported on

  • Not stated: The third-quarter release said the UK sale was expected in the fourth quarter. The fourth-quarter release records the sale and a gain but does not state whether timing matched the plan.

Other quarters

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.