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EMCOR Group, Inc. EME reported impressive fourth-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
Following the results, EMCOR stock tumbled 3.3% during today’s pre-market trading session.
The quarter’s results reflect the benefits of strong demand in core end markets and customers’ confidence in the company’s ability to deliver on complex projects. Continued success in securing new work across various sectors, including Network and Communications, Institutional, Water and Wastewater, Hospitality and Entertainment, and Manufacturing and Industrial, aided the quarter’s growth and boosted its remaining performance obligations (RPOs).
Strong field leadership, disciplined planning and continued investment in construction technology further supported the overall performance.
However, the reduction in RPOs within the High-Tech Manufacturing sector slowed down the RPO growth as EMCOR already completed certain semiconductor manufacturing construction projects.
Also, the company completed the sale of its U.K. Building Services operations to the OCS Group UK Limited for a total value of approximately $250 million. This strategic transaction offers EMCOR further financial flexibility to expand its business by redirecting the proceeds into strategic M&A, prefabrication capacity and U.S. project expansion.
The company reported adjusted earnings per share (EPS) of $7.19, surpassing the Zacks Consensus Estimate of $6.68 by 7.6%. In the year-ago quarter, the company reported adjusted EPS of $6.32.
Revenues of $4.51 billion also topped the consensus mark of $4.28 billion by 5.4%, and increased 19.7% year over year from $3.77 billion.
EMCOR Group, Inc. price-consensus-eps-surprise-chart | EMCOR Group, Inc. Quote
The gross margin contracted 40 bps year over year to 19.7% in the quarter. Selling, general and administrative expenses (as a percentage of revenues) expanded year over year by 40 basis points (bps) to 10.2%.
Operating margin in the quarter was 12.7%, up 240 bps year over year from 10.3%.
EMCOR currently operates in three reportable segments, which are U.S. Construction Services (Electrical and Mechanical Construction and Facilities Services), U.S. Building Services and U.S. Industrial Services.
U.S. Construction Services: This segment's revenues grew 27.4% year over year to $3.3 billion. The segment’s operating income appreciated 14.9% to $423.6 million, but the operating margin contracted 140 bps year over year to 12.8%.
Within the U.S. Construction umbrella, the U.S. Electrical Construction and Facilities Services segment’s revenues increased 45.8% year over year to $1.36 billion. Operating income increased 17%, but the margin contracted 310 bps year over year to 12.7%. The U.S. Mechanical Construction and Facilities Services segment’s revenues rose 17% year over year to $1.94 billion. The segment’s operating income rose 13.6%, but the margin declined 40 bps year over year to 12.9%.
U.S. Building Services: Revenues in the segment were up 2.2% from the prior-year quarter’s level to $772.5 million. Operating income grew 1.2% year over year, but the margin remained flat at 5.4%.
U.S. Industrial Services: This segment’s revenues grew 9.2% year over year to $341.1 million. Operating income increased 21.1% and the margin expanded 30 bps to 3.6%.
During the year, EMCOR’s revenues were up year over year by 16.6% to $16.99 billion.
Gross margin was up 30 bps to 19.3%, with the operating margin of 10.1% increasing 90 bps year over year.
Adjusted EPS was $25.87, up 20.2% from $21.52 reported in 2024.
As of 2025, EMCOR had cash and cash equivalents of $1.11 billion compared with $1.34 billion at 2024-end.
Net cash provided by operating activities was $1.3 billion in 2025 compared with $1.41 billion in the prior year.
As of Dec. 31, 2025, RPOs increased 31.2% year over year to $13.25 billion from $10.1 billion.
EMCOR expects annual revenues to be in the band of $17.75-$18.5 billion. EPS is expected to be within $27.25-$29.25.
Operating margin is expected to be between 9% and 9.4%.
EMCOR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comfort Systems USA, Inc. FIX delivered stellar fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.
Comfort Systems’ quarterly performance reflects robust demand trends in the public infrastructure market, with strong growth in the technology sector, particularly in data centers. Besides, the company’s results benefited from the Feyen Zylstra, Meisner, Right Way, Century, Summit and J&S acquisitions, alongside increased same-store activity. In 2025, Comfort Systems paid its shareholders $217.9 million through share repurchases and $68.8 million through dividends.
Quanta Services, Inc. PWR reported record fourth-quarter 2025 results, driven by robust demand in its Electric Infrastructure Solutions segment and contributions from recent acquisitions.
Quanta’s growth was primarily fueled by accelerating utility investments, power generation and load-center related projects, along with incremental contributions from acquired businesses, including Tri-City, Wilson and Billings. For 2026, Quanta expects revenues between $33.25 billion and $33.75 billion, reflecting double-digit growth. GAAP EPS is projected to be in the range of $8.36-$9.06, while adjusted EPS is expected to be in the range of $12.65-$13.35. It is supported by record backlog, continued utility spending and anticipated contributions from recent acquisitions.
Jacobs Solutions Inc. J reported stellar first-quarter fiscal 2026 (ended Dec. 26, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and growing year over year.
Jacobs’ quarterly results reflect strong contributions from both the reportable segments, Infrastructure & Advanced Facilities and PA Consulting. Stronger performance in the life sciences, data center, semiconductor, water and transportation sectors, alongside increased demand for digital consulting services, bolstered the quarter’s uptrend. With the announcement of acquiring the remaining stake in PA Consulting and favorable market fundamentals, Jacobs is optimistic about its performance in the remaining fiscal 2026.
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This article originally published on Zacks Investment Research (zacks.com).
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