EMCOR raises 2026 profit forecast, tops Q3 estimates

EMCOR Group, Inc. (EME) raised its full-year 2026 revenue and profit forecasts after reporting third-quarter revenue of a quarterly record $5.54 billion, up 28.8% from a year earlier.

Non-GAAP diluted earnings per share of $9.60 topped the $8.44 consensus estimate compiled by Finnhub. Revenue also topped the $5.24 billion estimate compiled by Finnhub.

According to its 8-K filing, GAAP diluted earnings per share were $9.04, against $6.57 a year earlier. The gap reflects a non-cash impairment loss on identifiable intangible assets of $34.0 million, or $24.7 million after taxes.

Excluding that impairment, non-GAAP operating income was $579.8 million, or 10.5% of revenues.

Here's how the company did:

• Revenue: $5.54 billion vs. $4.30 billion a year earlier, and $5.24 billion expected, according to Finnhub
• Non-GAAP diluted EPS: $9.60 vs. $6.57 a year earlier, and $8.44 expected, according to Finnhub
• GAAP diluted EPS: $9.04 vs. $6.57 a year earlier
• Operating income: $545.8 million vs. $405.7 million a year earlier

Organic revenue, which excludes acquisitions and the 2025 sale of the company's United Kingdom operations, rose 25.5%. Revenue has risen in each of the last three quarters, from $4.30 billion to $5.15 billion, according to its SEC filings.

Segment results

The US electrical construction and facilities services segment had revenue of $1.85 billion, up from $1.29 billion, and operating income of $247.0 million, up from $145.2 million.

The US mechanical construction and facilities services segment had revenue of $2.55 billion, against $1.78 billion, and operating income of $308.2 million, against $229.3 million.

US building services revenue was $852.4 million, against $813.9 million, with operating income of $66.2 million, against $59.4 million. Industrial services revenue was $287.5 million, against $286.9 million, and its operating income fell to $5.1 million from $6.3 million.

Corporate administration costs were $46.8 million, against $42.0 million a year earlier.

Backlog and orders

Remaining performance obligations reached a record $18.57 billion as of Sept. 30, up from $12.61 billion a year earlier. The company attributed the increase to new contract awards across most of its sectors.

Chairman, President, and Chief Executive Officer Tony Guzzi said, “EMCOR delivered another quarter of exceptional growth, margin performance, operating cash flow, and capital allocation.”

2026 guidance

The company raised its 2026 revenue forecast to $20.6 billion to $21.0 billion, from the $20.0 billion to $20.5 billion range it gave on July 30.

Non-GAAP diluted EPS guidance moved to $34.50 to $35.50 from $32.00 to $33.25. The company now expects a non-GAAP operating margin of about 10%, up from 9.5% to 9.8%.

The margin and EPS forecasts exclude the impairment loss on identifiable intangible assets.

Capital returns

The board authorized an additional $500 million for share repurchases under its existing program. The program has no expiration date and will be funded from operations.

Dividends declared per common share were 40 cents in the quarter, compared with 25 cents a year earlier. For the first nine months, the company repurchased $456.5 million of stock, according to its cash flow statement.