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EMCOR Q3 Earnings Miss Estimates, RPOs Increase Y/Y, Stock Up
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Key Takeaways
EMCOR's Q3 EPS of $6.57 and revenues of $4.3B rose year over year but missed consensus estimates.
Strong demand across construction, healthcare and industrial sectors lifted overall performance.
RPOs climbed to $12.61B, prompting a raised 2025 outlook and a 2.4% pre-market stock increase.
EMCOR Group, Inc. (EME - Free Report) reported mixed third-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.
The quarter’s results reflect the benefits of strong demand in core end markets and customers’ confidence in the company’s ability to deliver on complex projects. Continued success in securing new work across various sectors and regions underscored its broad execution capabilities. Strong field leadership, disciplined planning and continued investment in construction technology further supported the overall performance.
During the quarter, the company observed significant growth across several sectors, including network and communications, healthcare, manufacturing and industrial, hospitality and entertainment, and institutional. Remaining performance obligations (RPOs) approached record levels and the pipeline remained robust.
Based on the momentum seen so far this year and factoring in the planned sale of the U.K. Building Services segment in the fourth quarter, the company revised its full-year outlook.
Following the results, shares of EMCOR gained 2.4% during today’s pre-market trading session.
EMCOR’s Q3 Earnings & Revenue Discussion
The company reported adjusted earnings per share (EPS) of $6.57, missing the Zacks Consensus Estimate of $6.65 by 1.2%. In the year-ago quarter, the company reported adjusted EPS of $5.80.
EMCOR Group, Inc. Price, Consensus and EPS Surprise
Revenues of $4.30 billion also missed the consensus mark of $4.32 billion by 0.4%, but increased 16.4% year over year from $3.70 billion. Strength across the segments helped the company achieve 8.1% higher organic revenues.
EME’s Segment Details
EMCOR currently operates in four reportable segments, which are U.S. Construction Services (Electrical and Mechanical Construction and Facilities Services), U.S. Building Services, U.S. Industrial Services and U.K. Building Services.
U.S. Construction Services: This segment's revenues grew 22.2% year over year to $3.06 billion. The segment’s operating income appreciated 12.1%. The margin contracted 110 basis points (bps) year over year to 12.2%.
Within the U.S. Construction umbrella, the U.S. Electrical Construction and Facilities Services segment’s revenues increased 52.1% year over year to $1.29 billion. Operating income increased 21.9%, but the margin contracted 280 bps year over year to 11.3%. The U.S. Mechanical Construction and Facilities Services segment’s revenues rose 7% year over year to $1.78 billion. The segment’s operating income rose 6.7%, but its margin remained flat year over year at 12.9%.
U.S. Building Services: Revenues in the segment were up 2.1% from the prior-year quarter’s level to $813.9 million. Operating income grew 6.9% year over year and the margin inched up 30 bps to 7.3%.
U.S. Industrial Services: This segment’s revenues inched up 0.2% year over year to $286.9 million. Operating income increased significantly by 91.1% and the margin expanded 110 bps to 2.2%.
U.K. Building Services: This segment’s revenues moved up 28.1% from the year-ago quarter to $136.2 million. Its operating income increased 37.6% and the margin expanded 40 bps to 5.6% year over year.
EME’s Operating Highlights
The gross margin contracted 50 bps year over year to 19.4% in the quarter. Selling, general and administrative expenses — as a percentage of revenues — remained flat year over year at 10%.
Operating margin in the quarter was 9.4%, down 40 bps year over year from 9.8%.
Liquidity & Cash Flow of EMCOR
As of Sept. 31, 2025, EMCOR had cash and cash equivalents of $655.1 million compared with $1.34 billion at 2024-end.
Net cash provided by operating activities was $777.7 million in the first nine months of 2025 compared with $938.4 million in the prior year.
RPOs, as of Sept. 31, 2025, increased year over year to $12.61 billion from $9.79 billion.
EME’s 2025 Outlook Revised
EMCOR now expects annual revenues to be in the band of $16.7-$16.8 billion compared with the prior expectation of $16.4-$16.9 billion. The new projection indicates an increase from $14.6 billion reported in 2024.
EPS is now expected to be within $25-$25.75 (previously expected $24.50-$25.75). The projection indicates an increase from $21.52 in 2024.
Operating margin is now expected to be between 9.2% and 9.4% compared with the previous expectation of 9% to 9.4%.
EME’s Zacks Rank & Other Recent Construction Releases
United Rentals, Inc.’s (URI - Free Report) third-quarter 2025 EPS missed the Zacks Consensus Estimate, but revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
D.R. Horton, Inc. (DHI - Free Report) reported mixed fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results, with earnings missing Zacks Consensus Estimate, while the total revenues beat the same. On a year-over-year basis, both metrics declined.
The continued housing market softness due to declining consumer confidence and affordability concerns marred D.R. Horton’s quarterly performance, resulting in lower home closings. Although the company is actively engaging in offering necessary sales incentives to drive traffic and incremental sales, it is adversely impacting the bottom line. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected third-quarter 2025 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate. However, the metrics declined year over year.
The performance of PulteGroup was hurt during the quarter due to the current softness in the housing market because of weaker consumer confidence and ongoing affordability challenges. Moreover, increases in direct costs related to home and land sales hurt the bottom line, alongside a decline in revenues. Nonetheless, with a diversified business platform, PulteGroup aims to counter the macro challenges and position itself for better growth prospects in the upcoming period.
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EMCOR Q3 Earnings Miss Estimates, RPOs Increase Y/Y, Stock Up
Key Takeaways
EMCOR Group, Inc. (EME - Free Report) reported mixed third-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.
The quarter’s results reflect the benefits of strong demand in core end markets and customers’ confidence in the company’s ability to deliver on complex projects. Continued success in securing new work across various sectors and regions underscored its broad execution capabilities. Strong field leadership, disciplined planning and continued investment in construction technology further supported the overall performance.
During the quarter, the company observed significant growth across several sectors, including network and communications, healthcare, manufacturing and industrial, hospitality and entertainment, and institutional. Remaining performance obligations (RPOs) approached record levels and the pipeline remained robust.
Based on the momentum seen so far this year and factoring in the planned sale of the U.K. Building Services segment in the fourth quarter, the company revised its full-year outlook.
Following the results, shares of EMCOR gained 2.4% during today’s pre-market trading session.
EMCOR’s Q3 Earnings & Revenue Discussion
The company reported adjusted earnings per share (EPS) of $6.57, missing the Zacks Consensus Estimate of $6.65 by 1.2%. In the year-ago quarter, the company reported adjusted EPS of $5.80.
EMCOR Group, Inc. Price, Consensus and EPS Surprise
EMCOR Group, Inc. price-consensus-eps-surprise-chart | EMCOR Group, Inc. Quote
Revenues of $4.30 billion also missed the consensus mark of $4.32 billion by 0.4%, but increased 16.4% year over year from $3.70 billion. Strength across the segments helped the company achieve 8.1% higher organic revenues.
EME’s Segment Details
EMCOR currently operates in four reportable segments, which are U.S. Construction Services (Electrical and Mechanical Construction and Facilities Services), U.S. Building Services, U.S. Industrial Services and U.K. Building Services.
U.S. Construction Services: This segment's revenues grew 22.2% year over year to $3.06 billion. The segment’s operating income appreciated 12.1%. The margin contracted 110 basis points (bps) year over year to 12.2%.
Within the U.S. Construction umbrella, the U.S. Electrical Construction and Facilities Services segment’s revenues increased 52.1% year over year to $1.29 billion. Operating income increased 21.9%, but the margin contracted 280 bps year over year to 11.3%. The U.S. Mechanical Construction and Facilities Services segment’s revenues rose 7% year over year to $1.78 billion. The segment’s operating income rose 6.7%, but its margin remained flat year over year at 12.9%.
U.S. Building Services: Revenues in the segment were up 2.1% from the prior-year quarter’s level to $813.9 million. Operating income grew 6.9% year over year and the margin inched up 30 bps to 7.3%.
U.S. Industrial Services: This segment’s revenues inched up 0.2% year over year to $286.9 million. Operating income increased significantly by 91.1% and the margin expanded 110 bps to 2.2%.
U.K. Building Services: This segment’s revenues moved up 28.1% from the year-ago quarter to $136.2 million. Its operating income increased 37.6% and the margin expanded 40 bps to 5.6% year over year.
EME’s Operating Highlights
The gross margin contracted 50 bps year over year to 19.4% in the quarter. Selling, general and administrative expenses — as a percentage of revenues — remained flat year over year at 10%.
Operating margin in the quarter was 9.4%, down 40 bps year over year from 9.8%.
Liquidity & Cash Flow of EMCOR
As of Sept. 31, 2025, EMCOR had cash and cash equivalents of $655.1 million compared with $1.34 billion at 2024-end.
Net cash provided by operating activities was $777.7 million in the first nine months of 2025 compared with $938.4 million in the prior year.
RPOs, as of Sept. 31, 2025, increased year over year to $12.61 billion from $9.79 billion.
EME’s 2025 Outlook Revised
EMCOR now expects annual revenues to be in the band of $16.7-$16.8 billion compared with the prior expectation of $16.4-$16.9 billion. The new projection indicates an increase from $14.6 billion reported in 2024.
EPS is now expected to be within $25-$25.75 (previously expected $24.50-$25.75). The projection indicates an increase from $21.52 in 2024.
Operating margin is now expected to be between 9.2% and 9.4% compared with the previous expectation of 9% to 9.4%.
EME’s Zacks Rank & Other Recent Construction Releases
EMCOR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2025 EPS missed the Zacks Consensus Estimate, but revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
D.R. Horton, Inc. (DHI - Free Report) reported mixed fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results, with earnings missing Zacks Consensus Estimate, while the total revenues beat the same. On a year-over-year basis, both metrics declined.
The continued housing market softness due to declining consumer confidence and affordability concerns marred D.R. Horton’s quarterly performance, resulting in lower home closings. Although the company is actively engaging in offering necessary sales incentives to drive traffic and incremental sales, it is adversely impacting the bottom line. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected third-quarter 2025 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate. However, the metrics declined year over year.
The performance of PulteGroup was hurt during the quarter due to the current softness in the housing market because of weaker consumer confidence and ongoing affordability challenges. Moreover, increases in direct costs related to home and land sales hurt the bottom line, alongside a decline in revenues. Nonetheless, with a diversified business platform, PulteGroup aims to counter the macro challenges and position itself for better growth prospects in the upcoming period.