Want to see EME full AI Analyst Report?
Top Page
EMCOR Group
(NYSE:EME)
Select Model
Select Model
Rating:80Outperform
Price Target:
$921.00
▲(23.65% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial performance (multi-year growth, expanding margins, low leverage, and high ROE) and a very positive latest earnings update (raised guidance and record RPOs supporting visibility). Offsetting factors are a more growth-priced valuation (P/E 23.709 with a low dividend yield) and only moderate technical trend confirmation given limited momentum-indicator data.
Positive Factors
Sustained revenue and margin expansion
EMCOR has delivered multi-year top-line growth with meaningful margin expansion, showing durable operational improvement. Higher gross and EBIT margins indicate better pricing, mix and execution, enabling reinvestment, stronger cash generation and resilience through construction cycles.
Negative Factors
Mechanical margin compression
Shift toward construction-manager/prime roles and more GMP/cost-plus work is lowering mechanical margins. If contract mix shift persists, structural margin pressure could reduce operating leverage and long-term profitability unless offset by pricing, productivity or mix rebalancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and margin expansion
EMCOR has delivered multi-year top-line growth with meaningful margin expansion, showing durable operational improvement. Higher gross and EBIT margins indicate better pricing, mix and execution, enabling reinvestment, stronger cash generation and resilience through construction cycles.
Read all positive factors
EMCOR Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across EMCOR’s business lines (e.g., mechanical construction, facilities services, electrical), revealing which segments drive growth, where demand is strongest, and how changes in end markets or contract mix may affect overall revenue stability.
Breaks down sales across EMCOR’s business lines (e.g., mechanical construction, facilities services, electrical), revealing which segments drive growth, where demand is strongest, and how changes in end markets or contract mix may affect overall revenue stability.
Data provided by:
The Fly
The FlyEMCOR Group (EME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.17B
Dividend Yield0.18%
Average Volume (3M)455.77K
Price to Earnings (P/E)24.8
Beta (1Y)1.40
Revenue Growth18.92%
EPS Growth33.51%
CountryUS
Employees44,000
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)31.99
Shares Outstanding44,109,900
10 Day Avg. Volume481,118
30 Day Avg. Volume455,766
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,065.17Price Target Upside43.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)31.83
Revenue Forecast (FY)$19.78B
EMCOR Group Business Overview & Revenue Model
Company Description
EMCOR Group, Inc. (EME) is a U.S.-based specialty contractor that provides mechanical and electrical construction, facilities services, and building/industrial infrastructure solutions. Through its operating subsidiaries, the company delivers serv...
How the Company Makes Money
EMCOR primarily makes money by delivering contracted construction and service work through its network of operating companies. A large portion of revenue comes from project-based work—installing, upgrading, or replacing electrical and mechanical s...
EMCOR Group Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance: record revenue, record RPOs, expanding operating income and EPS, meaningful gross-profit and SG&A leverage, and raised full-year guidance. Segment-level outperformance (notably Electrical and Mechanical Construction and Building Services) and strategic acquisitions underpin growth and visibility. Key challenges are principally mix- and timing-driven (mechanical margin compression due to contract mix, longer RPO burn timing), near-term EPS moderation from acquisition-related amortization, and external macro/supply-chain/geopolitical risks that could affect late-year activity. Overall, the positives (record results, strong bookings, raised guidance, solid balance sheet and cash flow) significantly outweigh the outlined headwinds.Positive Updates
Record Quarterly Revenue
Total revenues of $5.15 billion in Q2 2026, up 19.8% year-over-year (19.6% organic), establishing a quarterly record for the company.
Negative Updates
Mechanical Construction Margin Compression
Mechanical Construction operating margin declined ~110 basis points versus prior year to 12.5%, attributed to project mix shifts (greater construction manager/prime roles, increased GMP/cost-plus contracts) that carry lower gross margin.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenues of $5.15 billion in Q2 2026, up 19.8% year-over-year (19.6% organic), establishing a quarterly record for the company.
Read all positive updates
Company Guidance
EMCOR raised full‑year 2026 guidance, now expecting revenue of $20.0–$20.5 billion and diluted EPS of $32.00–$33.25, citing a strong first half and record RPOs of $17.14 billion (up 44% YoY, +29% since December, +10% sequential from March, 95% organic). Second‑quarter metrics underpinning the outlook included revenues of $5.15 billion (+19.8% YoY; +19.6% organic), operating income of $547.3 million (10.6% margin), diluted EPS of $9.06 (+35% YoY), gross profit of $1.02 billion (+22.6%; 19.8% margin, +40 bps), SG&A of $475 million (9.2% of revenues, -50 bps), and operating cash flow of $289.4 million in the quarter; balance sheet liquidity included $924 million of cash and $1.45 billion of working capital. Management also noted five recent electrical acquisitions that generated $625 million of trailing‑12‑month revenue and $105 million of EBITDA and are expected to contribute $250–$275 million of revenue in H2, with limited near‑term EPS dilution from acquisition amortization.EMCOR Group Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.60B | 16.99B | 14.57B | 12.58B | 11.08B | 9.90B |
| Gross Profit | 3.66B | 3.33B | 2.77B | 2.09B | 1.60B | 1.50B |
| EBITDA | 2.18B | 1.99B | 1.51B | 1.01B | 680.56M | 647.81M |
| Net Income | 1.44B | 1.27B | 1.01B | 632.99M | 406.12M | 383.53M |
Balance Sheet | ||||||
| Total Assets | 10.16B | 9.60B | 7.72B | 6.61B | 5.52B | 5.44B |
| Cash, Cash Equivalents and Short-Term Investments | 924.41M | 1.11B | 1.34B | 789.75M | 456.44M | 821.35M |
| Total Debt | 548.03M | 843.55M | 348.92M | 345.27M | 535.17M | 540.34M |
| Total Liabilities | 6.08B | 5.93B | 4.78B | 4.14B | 3.55B | 3.19B |
| Stockholders Equity | 4.08B | 3.67B | 2.94B | 2.47B | 1.97B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.19B | 1.33B | 821.25M | 448.64M | 282.63M |
| Operating Cash Flow | 1.29B | 1.30B | 1.41B | 899.65M | 497.93M | 318.82M |
| Investing Cash Flow | -159.27M | -873.59M | -299.28M | -161.29M | -140.80M | -153.08M |
| Financing Cash Flow | -881.71M | -663.76M | -555.37M | -412.05M | -710.12M | -245.46M |
EMCOR Group Technical Analysis
Positive
744.85
Price Trends
802.37
Negative
808.71
Negative
744.43
Positive
Market Momentum
-19.55
Negative
39.43
Neutral
56.61
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 744.85 is below the 20-day moving average (MA) of 759.24, below the 50-day MA of 802.37, and above the 200-day MA of 744.43, indicating a neutral trend. The MACD of -19.55 indicates Negative momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.61 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 1 risk factors in its most recent earnings report. EMCOR Group reported the most risks in the "Legal & Regulatory" 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $35.17B | 24.83 | 38.42% | 0.19% | 18.92% | 33.51% | |
76 Outperform | $60.88B | 42.50 | 53.55% | 0.15% | 46.11% | 108.71% | |
72 Outperform | $100.33B | 75.49 | 14.86% | 0.07% | 26.30% | 34.94% | |
66 Neutral | $17.31B | -59.22 | 9.64% | ― | 14.09% | -293.77% | |
63 Neutral | $9.30B | 17.24 | 21.32% | 1.69% | -0.38% | 2.58% | |
60 Neutral | $15.93B | 41.39 | 10.82% | 1.01% | 0.95% | -10.51% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
EME
EMCOR Group
797.43
169.46
26.98%
ACM
Aecom Technology
72.39
-38.08
-34.47%
FIX
Comfort Systems
1,729.69
1,032.10
147.95%
J
Jacobs Solutions
134.93
-3.55
-2.56%
PWR
Quanta Services
667.36
274.08
69.69%
APG
APi Group
39.68
4.09
11.49%
EMCOR Group Corporate Events
Executive/Board ChangesShareholder Meetings
EMCOR Shareholders Reelect Board and Approve Executive Pay
Positive
Jun 4, 2026
At EMCOR Group’s June 4, 2026 annual meeting, shareholders re-elected all nine incumbent directors, affirming the existing board leadership for another term. The strong support across all director nominees suggests continuity in the company&...
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.