Back to top

Image: Bigstock

EME to Divest EMCOR UK to Enhance Focus on U.S. Growth Strategy

Read MoreHide Full Article

Key Takeaways

  • EMCOR agreed to sell EMCOR UK to OCS Group UK for $255 million.
  • The sale supports EMCOR's focus on U.S. high-growth sectors and its national reach strategy.
  • Divestment aims to fund core services, acquisitions and enhance EMCOR's margin profile.

EMCOR Group, Inc. (EME - Free Report) has entered into a definitive agreement to sell EMCOR Group (UK) plc to OCS Group UK Limited. EMCOR UK is the company’s United Kingdom building services segment.

The transaction values EMCOR UK at approximately £190 million, equivalent to $255 million at current exchange rates. The sale sharpens EMCOR’s focus on high-growth sectors in the United States and supports its “local execution, national reach” strategy.

EME Divestment to Strengthen U.S. Construction and Services

The divestment of EMCOR UK will provide EME with funds to strengthen its electrical and mechanical construction and services businesses. The company also plans to pursue selective acquisitions to broaden its capabilities.

EMCOR UK has developed expertise in complex technical environments. EME expects alignment with OCS to support a smooth transition and anticipates the divestment to improve its operating margin profile.

EME Broadens Presence Across Key End-Markets

Apart from the divestment, EMCOR has been building scale in its core businesses through selective acquisitions. As of the second quarter end, the company spent $887.2 million on M&A. These moves are helping the company expand in data centers, healthcare facilities and institutional projects, while also lowering reliance on any single market. By strengthening capabilities across construction and services, EMCOR is laying the groundwork for sustained long-term growth.

In the first half of 2025, acquisitions added significantly to revenues, with Miller Electric making the biggest impact. The company invested heavily in M&A during the period, which has already boosted its order book. As of June 30, 2025, Remaining Performance Obligations were $11.91 billion, supported by both organic growth and contributions from Miller Electric. This rising backlog underscores EMCOR’s growing exposure to high-demand areas such as network infrastructure, manufacturing and institutional markets.

EME’s Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of EMCOR have gained 59.7% in the past six months compared with the Zacks Building Products - Heavy Construction industry’s growth of 58.9%. The company is benefiting from resilient demand for its services, mainly across network and communications, including data centers, healthcare, water and wastewater market sectors, fueled by the favorable public spending scenario.

EME’s Zacks Rank & Other Key Picks

Currently, EMCOR sports a Zacks Rank #1 (Strong Buy). 

Other top-ranked stocks from the Construction sector are Everus Construction Group Inc. (ECG - Free Report) , Tutor Perini Corporation (TPC - Free Report) and Great Lakes Dredge & Dock Corporation (GLDD - Free Report) , each flaunting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Everus Construction delivered a trailing four-quarter earnings surprise of 42.7%, on average. The Zacks Consensus Estimate for 2025 sales and EPS indicates growth of 18% and 3.9%, respectively, from the year-ago period’s levels. ECG stock has gained 21.4% year to date.

Tutor Perini Group delivered a trailing four-quarter earnings surprise of 387.2%, on average. The Zacks Consensus Estimate for 2025 sales and EPS indicates growth of 21.2% and 220.8%, respectively, from the prior-year levels. TPC stock has jumped 167.7% year to date.

Great Lakes Dredge & Dock delivered a trailing four-quarter earnings surprise of 45.3%, on average. The Zacks Consensus Estimate for 2025 sales and EPS indicates growth of 9% and 21.4%, respectively, from the prior-year levels. GLDD stock has gained 6.9% year to date.

Published in