We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will EMCOR's U.K. Exit Unlock Faster Growth Across the Core US?
Read MoreHide Full Article
Key Takeaways
EMCOR's U.K. divestiture redirects $255M toward U.S. growth, inorganic efforts and prefabrication capacity.
U.S. Electrical and Mechanical segments are surging, backed by data centers, healthcare and manufacturing.
Rising earnings estimates and strong RPOs reinforce EME's expanding competitive edge in core U.S. markets.
EMCOR Group, Inc. (EME - Free Report) announced the divestiture of its U.K. Building Services segment in September 2025, which is expected to be complete by the end of 2025, upon U.K. regulatory approval. The proceeds from this transaction are expected to be about $255 million.
This strategic move shifts the focus to a larger picture circling around the company’s highly profitable U.S. markets. It is already known that the public infrastructure market in the United States is currently reaching its peak, with multi-year visibility seen across data centers, healthcare, manufacturing and water infrastructure markets. Amid a favorable market scenario, EME’s two major segments, the US Electrical and Mechanical Construction and Facilities Services segments, continue to display significant strength despite market uncertainties.
During the first nine months of 2025, the revenues from the U.S. Electrical Construction and the U.S. Mechanical Construction segments grew year over year by 54.1% to $3.71 billion and 7.6% to $5.11 billion, respectively. The robust trends were backed by increased activity within the network and communications sector, mainly driven by data center construction projects demand trends, with other sectors including healthcare, commercial, manufacturing and industrial, and the high-tech manufacturing sectors showing incremental trends. Notably, as of Sept. 30, 2025, Remaining Performance Obligations (RPOs) were $12.61 billion, indicating 29% year-over-year growth and 25% from Dec. 31, 2024.
Thus, by redirecting U.K. sale proceeds into strategic M&A, prefabrication capacity and U.S. project expansion, EMCOR strengthens its competitive edge in sectors offering not just growth but durability. The divestiture is not a retreat, but a recalibration positioning EME to scale faster, deploy capital more efficiently and deepen its leadership in the U.S. markets that matter most.
Does EMCOR Hold Competitive Edge in the Market?
EMCOR faces competition when the public infrastructure market is considered, including key players Quanta Services, Inc. (PWR - Free Report) and Tutor Perini Corporation (TPC - Free Report) . However, EME holds a competitive edge by virtue of its diversified, high-margin exposure and strong execution in data-center, water and institutional markets.
Quanta is deeply leveraged into the energy-transition wave, including power-grid modernization, transmission and electrification backed by data-center demand. While its backlog is massive (electric and infrastructure), Quanta’s execution risk from labor constraints and supply-chain pressures is growing.
On the other hand, Tutor Perini excels in large civil and public works projects—leveraging an elevated backlog to capture transportation tunnels, mass transit and water infrastructure. However, Tutor Perini’s specialty-contractor margins are more volatile, and its civil-heavy business faces tougher competition for public-sector spending.
EME Stock’s Price Performance & Valuation Trend
Shares of this Connecticut-based infrastructure service provider have gained 25.5% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the broader Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.39, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of EME
EME’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days to $25.24 and $27.41 per share, respectively. The revised estimated figures for 2025 and 2026 imply year-over-year growth of 17.3% and 8.6%, respectively.
Image: Bigstock
Will EMCOR's U.K. Exit Unlock Faster Growth Across the Core US?
Key Takeaways
EMCOR Group, Inc. (EME - Free Report) announced the divestiture of its U.K. Building Services segment in September 2025, which is expected to be complete by the end of 2025, upon U.K. regulatory approval. The proceeds from this transaction are expected to be about $255 million.
This strategic move shifts the focus to a larger picture circling around the company’s highly profitable U.S. markets. It is already known that the public infrastructure market in the United States is currently reaching its peak, with multi-year visibility seen across data centers, healthcare, manufacturing and water infrastructure markets. Amid a favorable market scenario, EME’s two major segments, the US Electrical and Mechanical Construction and Facilities Services segments, continue to display significant strength despite market uncertainties.
During the first nine months of 2025, the revenues from the U.S. Electrical Construction and the U.S. Mechanical Construction segments grew year over year by 54.1% to $3.71 billion and 7.6% to $5.11 billion, respectively. The robust trends were backed by increased activity within the network and communications sector, mainly driven by data center construction projects demand trends, with other sectors including healthcare, commercial, manufacturing and industrial, and the high-tech manufacturing sectors showing incremental trends. Notably, as of Sept. 30, 2025, Remaining Performance Obligations (RPOs) were $12.61 billion, indicating 29% year-over-year growth and 25% from Dec. 31, 2024.
Thus, by redirecting U.K. sale proceeds into strategic M&A, prefabrication capacity and U.S. project expansion, EMCOR strengthens its competitive edge in sectors offering not just growth but durability. The divestiture is not a retreat, but a recalibration positioning EME to scale faster, deploy capital more efficiently and deepen its leadership in the U.S. markets that matter most.
Does EMCOR Hold Competitive Edge in the Market?
EMCOR faces competition when the public infrastructure market is considered, including key players Quanta Services, Inc. (PWR - Free Report) and Tutor Perini Corporation (TPC - Free Report) . However, EME holds a competitive edge by virtue of its diversified, high-margin exposure and strong execution in data-center, water and institutional markets.
Quanta is deeply leveraged into the energy-transition wave, including power-grid modernization, transmission and electrification backed by data-center demand. While its backlog is massive (electric and infrastructure), Quanta’s execution risk from labor constraints and supply-chain pressures is growing.
On the other hand, Tutor Perini excels in large civil and public works projects—leveraging an elevated backlog to capture transportation tunnels, mass transit and water infrastructure. However, Tutor Perini’s specialty-contractor margins are more volatile, and its civil-heavy business faces tougher competition for public-sector spending.
EME Stock’s Price Performance & Valuation Trend
Shares of this Connecticut-based infrastructure service provider have gained 25.5% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the broader Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.39, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of EME
EME’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days to $25.24 and $27.41 per share, respectively. The revised estimated figures for 2025 and 2026 imply year-over-year growth of 17.3% and 8.6%, respectively.
Image Source: Zacks Investment Research
EMCOR stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.