EMCOR Group (NYSE:EME) Announces Earnings Results, Beats Expectations By $0.51 EPS

EMCOR Group (NYSE:EME) posted its 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. The company had revenue of $4.51 billion for the quarter, compared to the consensus estimate of $4.28 billion. EMCOR Group had a return on equity of 37.04% and a net margin of 6.96%.EMCOR Group’s revenue was up 19.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $6.32 earnings per share. 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 Stock Down 6.9%

NYSE EME traded down $55.42 during trading on Thursday, hitting $746.38. 881,054 shares of the stock traded hands, compared to its average volume of 358,599. EMCOR Group has a 12-month low of $320.89 and a 12-month high of $835.00. The firm has a 50-day simple moving average of $706.19 and a 200-day simple moving average of $663.39. The company has a market capitalization of $33.42 billion, a P/E ratio of 30.01 and a beta of 1.17.

EMCOR Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Wednesday, January 14th were issued a $0.40 dividend. The ex-dividend date was Wednesday, January 14th. This represents a $1.60 dividend on an annualized basis and a yield of 0.2%. This is an increase from EMCOR Group’s previous quarterly dividend of $0.25. EMCOR Group’s payout ratio is presently 6.43%.

EMCOR Group announced that its board has approved a share repurchase program on Thursday, December 18th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the construction company to repurchase up to 1.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On EMCOR Group

Several large investors have recently bought and sold shares of the business. Swiss RE Ltd. purchased a new position in shares of EMCOR Group in the 4th quarter worth $25,000. Zions Bancorporation National Association UT purchased a new position in EMCOR Group in the fourth quarter worth about $28,000. DV Equities LLC bought a new stake in EMCOR Group during the fourth quarter worth approximately $39,000. Brown Brothers Harriman & Co. bought a new stake in EMCOR Group during the third quarter worth approximately $71,000. Finally, Osterweis Capital Management Inc. purchased a new stake in EMCOR Group during the second quarter valued at approximately $73,000. Institutional investors own 92.59% of the company’s stock.

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

Analysts Set New Price Targets

EME has been the topic of a number of research reports. Wall Street Zen downgraded shares of EMCOR Group from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 8th. DA Davidson boosted their price objective 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 upped their price objective on EMCOR Group from $713.00 to $754.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Robert W. Baird set a $713.00 price target on EMCOR Group in a report on Friday, October 31st. Finally, Weiss Ratings restated a “buy (b)” rating on shares of EMCOR Group in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $698.83.

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.