EMCOR Group, Inc.

EME · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

EMCOR has turned into a data center builder: the backlog hit a record and management raised 2026 guidance twice in six months. The question is whether profit keeps up when more of the work pays a thinner cut. How much of the backlog is data center work?

  • Data centers became the growth engine.

    Data centers drove the biggest revenue increase across the business, and for the first time the largest end customers walked EMCOR's own people through their build plans. That bought two to three years of visibility. What share of revenue is now data center work?

  • The mix is shifting toward work that pays a thinner cut.

    More mechanical work is booked cost-plus or as prime contractor, where EMCOR marks up other firms' materials and crews less. Management put the shift at 9 or 10 points of the mix, and it cut mechanical margin in the first quarter. How does that margin compare with past cycles?

  • Cash flow stalled even while earnings set records.

    Receivables on the fast-growing work swelled by about $900 million in six months and Q1 cash flow came in flat. Management still expects 80% to 85% of operating profit to turn into cash; if not, growth is paid for from the cash pile.

Bullish
  • Record data center backlog
    The bull case starts with a backlog that keeps setting records, almost entirely won from existing operations, which gives management visibility on revenue well beyond the current year.
  • Overhead grows slower than revenue
    Construction margins have held in the low double digits even as volumes climbed, because the company adds overhead far more slowly than it adds revenue and gains purchasing scale.
  • Acquisitions pushed into data centers
    Management keeps buying electrical and mechanical contractors with solid local franchises and then moves their skilled crews into data center work rather than paying up for single-market assets.
Bearish
  • Cost-plus contract mix
    The bear case is that EMCOR is paid less per dollar of work as owners push more projects into cost-plus and prime-contractor structures where markups are thinner.
  • Field supervision shortage
    More work is available than EMCOR can staff, because the real limit is trained foremen and project managers rather than demand, equipment or access to sites.
  • Slower backlog conversion
    Bookings keep outrunning revenue, and the growing share of work that finishes beyond a year means the backlog overstates how quickly growth reaches the income statement.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Sale≥$250KAug 21Oct 8
Donald Trump
Republican · Executive
Purchase≥$100KJul 20Sep 22
Donald Trump
Republican · Executive
Purchase≥$1KMar 17May 13
Donald Trump
Republican · Executive
Sale≥$500KMar 17May 13
Donald Trump
Republican · Executive
Purchase≥$15KMar 12May 13

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Product segmentsGeography
FY2025 · USD

How EMCOR Group turned $17.0B of revenue into $1.7B of operating income.

Revenue
United States Mechanical Construction And Facilities Services$7.1B▲ 10.29% YoY
United States Electrical Construction And Facilities Services$5.1B▲ 52.38% YoY
United States Building Services$3.2B▲ 0.14% YoY
United States Industrial Services$1.3B▲ 0.65% YoY
United Kingdom Building Services$471.3M▲ 10.77% YoY
Total revenue$17.0B
Gross profit$3.3B19.3%
Operating income$1.7B10.1%
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