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

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

EME stock traded down $55.42 during trading on Thursday, hitting $746.38. 881,054 shares of the company’s stock traded hands, compared to its average volume of 358,599. The business has a fifty day simple moving average of $706.19 and a two-hundred day simple moving average of $663.39. The firm has a market capitalization of $33.42 billion, a P/E ratio of 30.01 and a beta of 1.17. EMCOR Group has a 1 year low of $320.89 and a 1 year high of $835.00.

EMCOR Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 30th. Stockholders 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 annualized dividend and a dividend yield of 0.2%. This is an increase from EMCOR Group’s previous quarterly dividend of $0.25. EMCOR Group’s dividend payout ratio (DPR) is presently 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

Institutional Investors Weigh In On EMCOR Group

A number of institutional investors have recently added to or reduced their stakes in the stock. Virtu Financial LLC bought a new position in EMCOR Group in the fourth quarter worth about $507,000. Sunbelt Securities Inc. boosted its stake in EMCOR Group by 6.4% in the fourth quarter. Sunbelt Securities Inc. now owns 529 shares of the construction company’s stock valued at $324,000 after acquiring an additional 32 shares in the last quarter. Invesco Ltd. grew its holdings in EMCOR Group by 10.5% in the fourth quarter. Invesco Ltd. now owns 799,271 shares of the construction company’s stock worth $488,986,000 after purchasing an additional 75,692 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in shares of EMCOR Group by 6.6% during the 4th quarter. Corient Private Wealth LLC now owns 14,114 shares of the construction company’s stock valued at $8,637,000 after purchasing an additional 877 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its position in shares of EMCOR Group by 12.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,879 shares of the construction company’s stock worth $6,044,000 after purchasing an additional 1,066 shares in the last quarter. Institutional investors own 92.59% of the company’s stock.

Analyst Upgrades and Downgrades

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

EMCOR Group declared that its board has initiated a share buyback plan on Thursday, December 18th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the construction company to purchase up to 1.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

EMCOR Group Company Profile

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.