Emcor Group, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 2 raised, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Record quarterly revenue, organic growth 16.8%: Revenue of $4.63 billion was a quarterly record, up 19.7%. Organic growth, excluding acquisitions and the sale of the UK operations, was 16.8%. Source
• Diluted EPS up 30.0%: Diluted EPS was $6.84, against $5.26, a 30.0% increase. Net income was $305.5 million, against $240.7 million. Source
• Guidance raised on project mix: Management said the raised 2026 guidance reflects anticipated project mix and visibility into the rest of the year. Operating margin guidance was kept at 9.0% to 9.4%. Source
• Electrical and mechanical revenue rose: Electrical construction revenue was $1,447.4 million, against $1,087.8 million. Mechanical construction revenue was $2,026.3 million, against $1,572.6 million, and 44% of total revenue. Source
• Record remaining performance obligations: RPOs were a record $15.62 billion at March 31, 2026, up 32.9% from a year earlier and up from $13.25 billion at December 31, 2025. Source
• Operating cash flow was lower: Net cash provided by operating activities was $0.6 million, against $108.5 million. Changes in operating assets and liabilities absorbed $354.8 million. Source
• Buybacks lower than a year earlier: Repurchases of common stock were $87.1 million, against $224.8 million a year earlier. Dividends paid were $17.8 million, against $11.5 million. Source

“These results reflect our strategic positioning and operational excellence across our construction and services platforms while demonstrating our customers' confidence in EMCOR as a partner of choice for complex and mission-critical projects.”

Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR

Guidance

What changed from last quarter

• Guidance raised: Revenue guidance range raised to $18.50 billion - $19.25 billion from $17.75 billion - $18.50 billion. Source
• Guidance raised: Diluted EPS guidance range raised to $28.25 - $29.75 from $27.25 - $29.25. Source
• Guidance kept: Operating margin guidance held at 9.0% to 9.4%, as in the February 26, 2026 guidance. Source
• Ended: United Kingdom building services revenue fell to nothing; the year-earlier quarter included $105.3 million from the UK operations sold earlier. Source

Results and growth drivers

• Record quarterly revenue, organic growth 16.8%: Revenue of $4.63 billion was a quarterly record, up 19.7%. Organic growth, excluding acquisitions and the sale of the UK operations, was 16.8%. Source
• Diluted EPS up 30.0%: Diluted EPS was $6.84, against $5.26, a 30.0% increase. Net income was $305.5 million, against $240.7 million. Source
• Operating margin 8.7%, up from 8.2%: Operating income was $403.8 million, or 8.7% of revenues, against $318.8 million, or 8.2%. Prior-year non-GAAP operating income was $328.1 million, or 8.5%. Source
• Guidance raised on project mix: Management said the raised 2026 guidance reflects anticipated project mix and visibility into the rest of the year. Operating margin guidance was kept at 9.0% to 9.4%. Source

Segments and regions

• Electrical and mechanical revenue rose: Electrical construction revenue was $1,447.4 million, against $1,087.8 million. Mechanical construction revenue was $2,026.3 million, against $1,572.6 million, and 44% of total revenue. Source
• Building and industrial services grew: United States building services revenue was $772.6 million, against $742.6 million. Industrial services revenue was $381.8 million, against $359.0 million. Source
• Corporate costs fell year on year: Corporate administration expense was $45.5 million, against $52.2 million in the first quarter of 2025. Source

“The fundamentals of our business remain strong and we are well-positioned for the remainder of 2026.”

Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR

Order book and demand

• Record remaining performance obligations: RPOs were a record $15.62 billion at March 31, 2026, up 32.9% from a year earlier and up from $13.25 billion at December 31, 2025. Source
• Four sectors led backlog growth: The most significant growth since year-end came from Network and Communications, Water and Wastewater, Institutional, and Healthcare. Source
• Most sectors showed RPO increases: RPOs rose across the majority of the sectors in which the company operates, compared with December 31, 2025. Source

Costs and margins

• SG&A ratio fell to 9.9%: SG&A was $460.1 million, or 9.9% of revenues, against $404.0 million, or 10.4%. Gross profit was $864.0 million, against $722.7 million. Source
• Cost of sales rose with revenue: Cost of sales was $3,764.3 million, against $3,144.7 million in the first quarter of 2025. Source
• Depreciation and amortization rose: Depreciation and amortization, including amortization of identifiable intangible assets, was $52.6 million, against $41.9 million a year earlier. Source
• Tax rate slightly lower: The income tax rate was 25.5%, against 25.8% a year earlier. Source

Cash flow and balance sheet

• Operating cash flow was lower: Net cash provided by operating activities was $0.6 million, against $108.5 million. Changes in operating assets and liabilities absorbed $354.8 million. Source
• Cash balance fell over the quarter: Cash and cash equivalents were $916.4 million at March 31, 2026, against $1,112.0 million at December 31, 2025. Purchases of property, plant and equipment were $28.7 million. Source
• Receivables and contract assets rose: Accounts receivable, net, rose to $4.55 billion from $4.24 billion at December 31, 2025; contract assets rose to $377.3 million from $337.7 million. Source

Capital returns and share count

• Buybacks lower than a year earlier: Repurchases of common stock were $87.1 million, against $224.8 million a year earlier. Dividends paid were $17.8 million, against $11.5 million. Source
• Dividend declared at $0.40 a share: Dividends declared per common share were $0.40, against $0.25 in the first quarter of 2025. Source
• Weighted diluted shares declined: Weighted average diluted shares were 44,687,157, against 45,784,235 a year earlier. Basic shares were 44,564,932, against 45,634,877. Source

Acquisitions and portfolio

• Acquisitions added $234.1 million revenue: Incremental revenue from acquisitions was $234.1 million, or 6.1% of the year-over-year growth. Source
• Acquisition payments fell from prior year: Payments for acquisitions of businesses, net of cash acquired, were $43.7 million, against $850.6 million in the first quarter of 2025. Source
• Miller Electric deal costs in prior year: The first quarter of 2025 included $9.4 million of transaction costs for the Miller Electric acquisition, $6.9 million after taxes. Source

Figures management reported

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.