EMCOR Group (EME)
NYSE:EME
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EMCOR Group
(NYSE:EME)
Select Model
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Rating:79Outperform
Price Target:
$854.00
▲(8.21% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by strong financial performance (growth and margin expansion with conservative leverage) and a positive earnings outlook supported by record backlog and confident 2026 guidance. Technicals are constructive but somewhat stretched near-term, while a high P/E and very low dividend yield weigh on valuation.
Positive Factors
Sustained Revenue & Margin Expansion
EMCOR’s multi-year revenue doubling and meaningful margin expansion show durable scaling of its construction and facilities platform. Improved gross and net margins signal better pricing, execution and project controls across trades, supporting sustainable profitability as the company captures larger, more complex work.
Negative Factors
Acquisition‑Related Amortization Pressure
Significant noncash amortization from large acquisitions reduces reported GAAP margins and EPS near term, masking operating profitability. Persistent amortization plus incremental integration costs can constrain reported earnings growth and complicate comparisons, limiting headline margin expansion despite underlying cash performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue & Margin Expansion
EMCOR’s multi-year revenue doubling and meaningful margin expansion show durable scaling of its construction and facilities platform. Improved gross and net margins signal better pricing, execution and project controls across trades, supporting sustainable profitability as the company captures larger, more complex work.
Read all positive factors
EMCOR Group (EME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.14B
Dividend Yield0.16%
Average Volume (3M)391.44K
Price to Earnings (P/E)21.7
Beta (1Y)1.50
Revenue Growth14.11%
EPS Growth26.26%
CountryUS
Employees40,400
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)7.19
Shares Outstanding44,532,566
10 Day Avg. Volume284,722
30 Day Avg. Volume391,445
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)7.50
Price to Sales (P/S)1.62
P/FCF Ratio23.17
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit10.69
Enterprise Value/Ebitda17.87
Forecast
1Y Price Target
$863.00Price Target Upside9.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)28.32
Revenue Forecast (FY)$18.16B
EMCOR Group Business Overview & Revenue Model
Company Description
EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, starts-up, operation, and maintenance services related t...
How the Company Makes Money
EMCOR Group generates revenue primarily through its construction and facilities services. The company makes money by executing contracts for mechanical and electrical construction projects, which often involve significant upfront costs but yield s...
EMCOR Group Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operating and financial picture with record 2025 revenues, margins, EPS and cash generation, substantial backlog growth (RPOs), successful large-scale M&A (Miller) and sizable returns to shareholders. Operational challenges were acknowledged — including some margin compression from new-territory project start-ups, increased SG&A and noncash amortization from acquisitions, and a near-term revenue headwind from the U.K. divestiture. Management emphasized diversified demand, multi-year data center visibility, disciplined capital allocation and confidence in sustaining productivity gains. Overall, the positives (record results, strong backlog, cash generation, and strategic positioning) materially outweigh the limited execution and accounting headwinds cited.Positive Updates
Quarterly Revenue and Earnings Growth
Q4 revenues of $4.5 billion, up 19.7% year-over-year; adjusted diluted EPS of $7.19, up 13.8% YoY; adjusted operating income of $440 million, up 13.1% YoY; adjusted operating margin for the quarter of 9.7%.
Negative Updates
Margin Compression and Project Mix Pressures
Management noted spillover headwinds from prior quarter (Q3) into Q4 and that electrical margins 'coughed up 50–60 basis points' in 2025 due to new-territory start-ups, mix shift toward target-price/GMP work and project start-up effects—creating margin volatility.
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Q4-2025 Updates
Positive
Negative
Quarterly Revenue and Earnings Growth
Q4 revenues of $4.5 billion, up 19.7% year-over-year; adjusted diluted EPS of $7.19, up 13.8% YoY; adjusted operating income of $440 million, up 13.1% YoY; adjusted operating margin for the quarter of 9.7%.
Read all positive updates
Company Guidance
EMCOR guided 2026 revenues of $17.75–$18.50 billion, diluted EPS of $27.25–$29.25 and a full‑year operating margin of 9.0%–9.4%, noting high confidence in the low‑to‑midpoint absent a major economic event but that reaching the midpoint‑to‑high end requires strong margin execution and booking roughly 40%–45% of new work; that guidance rests on a starting RPO backlog of about $13.25 billion (up from $10.1B) with ~82% expected to burn in the next 12 months. Management framed the outlook against 2025 record results — $16.99B revenue, adjusted diluted EPS $25.87 ($28.19 GAAP), record adjusted operating margin 9.4% and $1.3B operating cash flow — and highlighted balance sheet strength (≈$1.1B cash), ~ $580M of share repurchases in 2025 and an incremental $500M repurchase authorization.EMCOR Group Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.99B | 14.57B | 12.58B | 11.08B | 9.90B |
| Gross Profit | 3.33B | 2.77B | 2.09B | 1.60B | 1.50B |
| EBITDA | 1.99B | 1.51B | 1.01B | 680.56M | 647.81M |
| Net Income | 1.27B | 1.01B | 632.99M | 406.12M | 383.53M |
Balance Sheet | |||||
| Total Assets | 9.60B | 7.72B | 6.61B | 5.52B | 5.44B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.34B | 789.75M | 456.44M | 821.35M |
| Total Debt | 843.55M | 348.92M | 345.27M | 535.17M | 540.34M |
| Total Liabilities | 5.93B | 4.78B | 4.14B | 3.55B | 3.19B |
| Stockholders Equity | 3.67B | 2.94B | 2.47B | 1.97B | 2.25B |
Cash Flow | |||||
| Free Cash Flow | 1.19B | 1.33B | 821.25M | 448.64M | 282.63M |
| Operating Cash Flow | 1.30B | 1.41B | 899.65M | 497.93M | 318.82M |
| Investing Cash Flow | -873.59M | -299.28M | -161.29M | -140.80M | -153.08M |
| Financing Cash Flow | -663.76M | -555.37M | -412.05M | -710.12M | -245.46M |
EMCOR Group Technical Analysis
Positive
789.19
Price Trends
749.29
Positive
691.59
Positive
657.39
Positive
Market Momentum
6.43
Negative
60.64
Neutral
79.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EME, the sentiment is Positive. The current price of 789.19 is above the 20-day moving average (MA) of 739.60, above the 50-day MA of 749.29, and above the 200-day MA of 657.39, indicating a bullish trend. The MACD of 6.43 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 79.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EME.
EMCOR Group Risk Analysis
EMCOR Group disclosed 34 risk factors in its most recent earnings report. EMCOR Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EMCOR Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $53.65B | 32.26 | 48.52% | 0.20% | 27.71% | 80.54% | |
79 Outperform | $35.14B | 21.70 | 39.04% | 0.16% | 14.11% | 26.26% | |
77 Outperform | $86.22B | 62.25 | 12.60% | 0.09% | 18.72% | 23.97% | |
71 Outperform | $19.08B | 52.70 | 9.13% | ― | 10.69% | ― | |
68 Neutral | $11.10B | 42.33 | 19.75% | 1.06% | 0.21% | 53.80% | |
68 Neutral | $15.40B | 30.11 | 11.80% | 0.94% | -23.00% | -61.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
EME
EMCOR Group
789.19
414.77
110.77%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.