Emcor Group, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 30 July 2026: press release. Guidance figures: 3 raised. The quarter’s numbers.

Read the filing

Key takeaways

• Quarterly revenue reached a record: Revenues were $5.15 billion, up 19.8%. Organic revenue growth, excluding acquisitions and the UK sale, was 19.6%. Source
• Operating margin rose to 10.6%: Operating income was $547.3 million, or 10.6% of revenues, against $415.2 million, or 9.6%, a year earlier. Source
• Diluted EPS up 34.8%: Net income was $403.7 million, or $9.06 per diluted share, against $302.2 million, or $6.72 per diluted share, in the second quarter of 2025. Source
• Electrical margin rose sharply: US electrical operating income was $231.4 million, a 13.9% segment margin against 11.8%. Revenue was $1.66 billion, up from $1.34 billion. Source
• SG&A fell as share of revenue: SG&A was $475.0 million, or 9.2% of revenues, against $418.6 million, or 9.7%, a year earlier. First-half SG&A was 9.6% of revenues. Source
• Record remaining performance obligations: RPOs were a record $17.14 billion at June 30, 2026, up $5.23 billion or 43.9% from a year earlier. Source
• Operating cash flow lower in first half: Net cash from operations was $289.9 million for six months, against $302.2 million. Changes in operating assets and liabilities used $525.9 million. Source

“We had an exceptional second quarter, growing revenues nearly 20% and earning an impressive 10.6% operating margin.”

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

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 revenue guidance was raised from the April 29, 2026 range of $18.50 billion - $19.25 billion. Source
• Guidance raised: Full-year 2026 diluted EPS guidance was raised from the April 29, 2026 range of $28.25 - $29.75. Source
• Guidance raised: Full-year 2026 operating margin guidance was raised from the April 29, 2026 range of 9.0% - 9.4%. Source

Results and growth drivers

• Quarterly revenue reached a record: Revenues were $5.15 billion, up 19.8%. Organic revenue growth, excluding acquisitions and the UK sale, was 19.6%. Source
• Operating margin rose to 10.6%: Operating income was $547.3 million, or 10.6% of revenues, against $415.2 million, or 9.6%, a year earlier. Source
• Diluted EPS up 34.8%: Net income was $403.7 million, or $9.06 per diluted share, against $302.2 million, or $6.72 per diluted share, in the second quarter of 2025. Source
• First-half revenue and earnings: Six-month revenues were $9.78 billion, up 19.7%, with organic growth of 18.3%. Six-month diluted EPS was $15.89, against $11.96 a year earlier. Source

Segments and regions

• Electrical margin rose sharply: US electrical operating income was $231.4 million, a 13.9% segment margin against 11.8%. Revenue was $1.66 billion, up from $1.34 billion. Source
• Mechanical revenue grew, margin fell: US mechanical revenue was $2.30 billion, 45% of the total, up from $1.76 billion. Segment margin was 12.5%, against 13.6% a year earlier. Source
• Building services and industrial margins: US building services margin was 7.6%, against 6.3%. Industrial services margin was 2.7%, against negative 0.1% a year earlier. Source
• UK revenue no longer reported: UK building services contributed no revenue this quarter. A year earlier, lost UK revenue from the sale of the operations was $134.6 million. Source

“Supported by a liquid balance sheet, exceptional field leadership, and a diverse pipeline with significant visibility, we believe EMCOR is well-positioned”

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

Costs, margins and pricing

• SG&A fell as share of revenue: SG&A was $475.0 million, or 9.2% of revenues, against $418.6 million, or 9.7%, a year earlier. First-half SG&A was 9.6% of revenues. Source
• Depreciation and amortization increased: Depreciation and amortization, including intangible amortization, was $54.3 million in the second quarter, against $46.6 million a year earlier. Source
• Corporate administration costs rose: Corporate administration expense was $43.7 million in the second quarter, against $39.2 million a year earlier. Source
• Pricing discipline emphasized: Management said it remains focused on pricing discipline, selective project choice and high-level execution across operations. Source

Demand and the order book

• Record remaining performance obligations: RPOs were a record $17.14 billion at June 30, 2026, up $5.23 billion or 43.9% from a year earlier. Source
• Backlog rose from March 31: RPOs were $15.62 billion at March 31, 2026, so the backlog rose by about $1.52 billion during the second quarter.
• Growth concentrated in several sectors: Management said RPOs rose in most sectors, with the largest gains in Network and Communications, Water and Wastewater, Institutional, and Healthcare. Source

Cash and balance sheet

• Operating cash flow lower in first half: Net cash from operations was $289.9 million for six months, against $302.2 million. Changes in operating assets and liabilities used $525.9 million. Source
• Cash balance declined: Cash and cash equivalents were $924.4 million at June 30, 2026, down from $1.11 billion at December 31, 2025. Source
• Receivables rose on higher activity: Accounts receivable rose to $5.10 billion from $4.24 billion at December 31, 2025. Contract assets rose to $400.5 million. Source
• Capital expenditure rose slightly: Purchases of property, plant and equipment were $59.9 million for six months, against $54.2 million a year earlier. Source

Shareholder returns

• Share repurchases reduced year on year: Repurchases of common stock were $268.5 million in the first six months, against $432.2 million a year earlier. Source
• Dividend declared per share increased: Dividends declared were $0.40 per share in the second quarter and $0.80 for six months, against $0.25 and $0.50 a year earlier. Source
• Diluted share count lower: Weighted average diluted shares were 44,552,894 in the second quarter, against 44,990,388 a year earlier. Source

Acquisitions and strategy

• Acquisitions to complement operations: Management said recent and pending acquisitions complement existing operations, add capabilities and enter new geographies. Source
• Acquisition payments lower in first half: Payments for acquisitions of businesses, net of cash acquired, were $95.0 million for six months, against $887.2 million a year earlier. Source
• First-quarter acquisition payments: In the first-quarter release, acquisition payments were $43.7 million, against $850.6 million in the first quarter of 2025.

Coming up, as management said on 30 July 2026

• Pending acquisitions referenced: Management referred to pending acquisitions without naming them or giving timing. Source

Figures management reported

Other quarters

• Q1 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.