EMCOR Group (NYSE:EME) Releases Quarterly Earnings Results, Beats Estimates By $0.51 EPS

EMCOR Group (NYSE:EME) issued its quarterly earnings results on Thursday. The construction company reported $7.19 earnings per share for the quarter, beating analysts’ consensus estimates of $6.68 by $0.51, FiscalAI reports. EMCOR Group had a net margin of 6.96% and a return on equity of 37.04%. The firm had revenue of $4.51 billion for the quarter, compared to analyst estimates of $4.28 billion. During the same period last year, the company posted $6.32 EPS. EMCOR Group’s quarterly revenue was up 19.7% compared to the same quarter last year. EMCOR Group updated its FY 2026 guidance to 27.250-29.250 EPS.

Here are the key takeaways from EMCOR Group’s conference call:

• EMCOR delivered a record 2025 — nearly $17.0 billion in revenue, record adjusted diluted EPS of $25.87, and a full‑year adjusted operating margin of 9.4%, with Q4 revenue of $4.5 billion (+19.7%).
• Backlog (RPO) rose to $13.25 billion, led by network & communications (data centers) RPO of $4.46 billion (≈+60% YoY), giving the company multi‑year visibility in that sector.
• Executed strategic portfolio moves and shareholder returns — sold the U.K. business, completed the largest-ever acquisition (Miller Electric) plus nine other deals, repurchased roughly $580–600 million of shares and raised the dividend to $0.40, while retaining a strong balance sheet.
• 2026 guidance: revenue of $17.75–18.5 billion, EPS of $27.25–29.25 and operating margin of 9.0–9.4%; management says the low/mid range is high‑confidence but reaching the high end requires booking 40–45% of new work and strong margin execution.
• Management warned of margin pressure from project mix, new‑market startups and incremental amortization/SG&A from acquisitions (Miller/Danforth), and noted that large fixed‑price projects can create downside if execution or contract terms are unfavorable.

EMCOR Group Price Performance

Shares of NYSE:EME traded down $55.42 during midday trading on Thursday, reaching $746.38. 881,054 shares of the company’s stock were exchanged, compared to its average volume of 358,599. The stock has a market cap of $33.42 billion, a price-to-earnings ratio of 30.01 and a beta of 1.17. EMCOR Group has a fifty-two week low of $320.89 and a fifty-two week high of $835.00. The firm’s 50 day simple moving average is $706.19 and its two-hundred day simple moving average is $663.39.

EMCOR Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Wednesday, January 14th were given a $0.40 dividend. The ex-dividend date was Wednesday, January 14th. This is a positive change from EMCOR Group’s previous quarterly dividend of $0.25. This represents a $1.60 annualized dividend and a yield of 0.2%. EMCOR Group’s dividend payout ratio (DPR) is currently 6.43%.

Key Headlines Impacting EMCOR Group

Here are the key news stories impacting EMCOR Group this week:

• Positive Sentiment: EMCOR posted an earnings beat: adjusted EPS of $7.19 vs. consensus $6.68 and revenue of $4.51B vs. $4.28B; organic revenue grew ~9.5% and operating margins improved year‑over‑year — evidence of underlying demand and margin leverage. Earnings Beat
• Positive Sentiment: Management set FY2026 EPS guidance of $27.25–$29.25 and revenue guidance of $17.8B–$18.5B; the EPS range implies continued strong full‑year profitability (range includes/exceeds consensus), supporting forward earnings visibility. Press Release
• Neutral Sentiment: EME is cited as a potential beneficiary of the AI data‑center buildout (power, cooling, infrastructure), a thematic tailwind that could boost longer‑term backlog but is uncertain in timing and magnitude. AI Data Center Theme
• Neutral Sentiment: The company’s earnings call / transcript and slide deck are available for detail on backlog, margins and capital allocation; these materials will matter to investors deciding whether the beat and guidance justify the current valuation. Earnings Call Transcript
• Negative Sentiment: Despite the beat, shares declined today—likely driven by profit‑taking after a recent run to near the 52‑week high, elevated valuation (P/E ~30) and mixed investor read of guidance versus very high expectations; the stock showed notable pre‑market volatility earlier. Market Reaction

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on EME shares. Robert W. Baird set a $713.00 price target on EMCOR Group in a research note on Friday, October 31st. Wall Street Zen cut shares of EMCOR Group from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 8th. DA Davidson increased their target price on shares of EMCOR Group from $725.00 to $800.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Stifel Nicolaus raised their price target on shares of EMCOR Group from $713.00 to $754.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of EMCOR Group in a research note on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $698.83.

EMCOR Group declared that its Board of Directors has approved a stock buyback plan on Thursday, December 18th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the construction company to buy up to 1.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On EMCOR Group

A number of institutional investors and hedge funds have recently made changes to their positions in EME. Great Lakes Advisors LLC boosted its position in shares of EMCOR Group by 32.3% during the 1st quarter. Great Lakes Advisors LLC now owns 590 shares of the construction company’s stock worth $218,000 after purchasing an additional 144 shares during the period. Geneos Wealth Management Inc. lifted its stake in EMCOR Group by 93.0% during the first quarter. Geneos Wealth Management Inc. now owns 220 shares of the construction company’s stock worth $81,000 after purchasing an additional 106 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of EMCOR Group during the second quarter worth $459,000. Baird Financial Group Inc. grew its stake in shares of EMCOR Group by 5.0% in the second quarter. Baird Financial Group Inc. now owns 5,820 shares of the construction company’s stock valued at $3,113,000 after buying an additional 275 shares in the last quarter. Finally, Bank of Nova Scotia grew its stake in shares of EMCOR Group by 406.1% in the second quarter. Bank of Nova Scotia now owns 4,565 shares of the construction company’s stock valued at $2,442,000 after buying an additional 3,663 shares in the last quarter. 92.59% of the stock is owned by hedge funds and other institutional investors.

About EMCOR Group

EMCOR Group, Inc is a provider of mechanical and electrical construction, industrial and energy infrastructure, and facilities services to commercial, institutional and industrial clients. The company delivers a broad range of services that include design-build and traditional construction of mechanical, electrical and plumbing systems; ongoing facilities maintenance and operations; and specialized industrial services for sectors such as manufacturing, data centers, healthcare and utilities.

EMCOR’s service offerings encompass HVAC, plumbing, electrical installation and maintenance, fire protection, building automation and controls, commissioning, testing and balancing, and energy management solutions.