Start here if you're new
what it is
EMCOR builds and maintains the hidden systems inside big buildings, from wiring and HVAC to plumbing and data connections.
how it gets paid
Last year Emcor made $17.0B in revenue. electrical systems was the main engine at $5.80B, or 34% of sales.
why it's growing
Revenue grew 16.6% last year. The 37.3% EPS surprise mattered most because it showed execution stayed strong even as investors worried about margins.
what just happened
EMCOR's latest quarter showed revenue of $4.51B and EPS of $7.19, ahead of consensus.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
31.5x trailing p/e — you're paying up for this one
0.2% dividend yield — cash in your pocket every quarter
24.5% return on capital — every dollar works hard here
xvary composite: 70/100 — average
What they do
EMCOR builds and maintains the hidden systems inside big buildings, from wiring and HVAC to plumbing and data connections.
EMCOR does the full job: design, installation, startup, and ongoing service. You hire one contractor instead of five. Scale matters here. EMCOR has 38,300 employees and gets 97% of revenue from the U.S., where local relationships, labor depth, and repeat work decide who wins the next project.
How they make money
$17.0B
annual revenue · their business grew +16.6% last year
electrical systems
$5.80B
mechanical and hvac
$5.10B
plumbing and process piping
$2.70B
building services and maintenance
$2.90B
uk and other specialty work
$0.50B
The products that matter
installs power and network infrastructure
Electrical Construction
$9.5B · 56% of revenue
this is the biggest piece of the company at $9.5B, and it is where data center demand has been strongest. It is also where the 280-basis-point margin drop hurts most because the segment is too large to hide.
core segment
builds hvac, piping, and mechanical systems
Mechanical Construction
$5.1B · 30% of revenue
this segment is 30% of the $17.0B revenue base. It gives you exposure beyond data centers, which matters when one hot end market starts getting crowded.
second engine
maintains buildings after the build
Facilities Services
$2.4B · 14% of revenue
at $2.4B, this is the smallest segment, but it matters because service work is usually steadier than one-off construction projects. If you want stability inside EME, this is where you look first.
stability layer
Key numbers
24.5%
return on capital
Return on capital → profit earned on the money used in the business → so what: EMCOR turns projects into cash better than most contractors.
$17.0B
annual revenue
That is the scale base. It also grew 16.6% vs. prior year, which is fast for a construction-services company.
$4M
long-term debt
On a company this size, $4M of debt is basically a rounding error. So what: the balance sheet gives management room when the cycle turns.
31.5x
trailing p/e
P/E → price divided by past earnings → so what: your stock already prices in a lot of future perfection.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $4M (0% of capital)
- net profit margin 7.0% — keeps 7 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EME 3 years ago → it's now worth $50,170.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
EMCOR's latest quarter showed revenue of $4.51B and EPS of $7.19, ahead of consensus.
The company reported fourth-quarter 2025 sales of $4.513B and net income of $434.61M. The last reported EPS beat consensus by 37.3%, but investors still focused on margin pressure and softer near-term expectations.
$4.51B
revenue
$7.19
eps
19.2%
gross margin
the number that mattered
The 37.3% EPS surprise mattered most because it showed execution stayed strong even as investors worried about margins.
-
emcor likely posted solid results during the fourth quarter of 2025. (the company was slated to report earnings as we went to press.) revenues likely jumped about 14%-16%, driven by strong performances from both of its operating units.we think network communications work and data center construction were the drivers of the strong growth we are projecting.
-
we expect this trend to continue in the near to intermediate term.during the september period the operating margin came under pressure, dropping 40 basis points from a year ago.
-
three factors hurt margins.
-
much of the miss came from the electrical segment where margins decreased 280 basis points.
-
this segment suffered growing pains as it expanded into new data center markets.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is electrical project margin slippage in newer data center markets. this company has demand. your risk is paying a premium multiple for work that gets harder to execute as it scales.
high
electrical segment margin pressure
Electrical construction is $9.5B of revenue, or 56% of the business. A 280-basis-point margin decline in the weak period on this page shows how quickly execution issues can overpower strong demand.
If the biggest segment stays less profitable, the premium multiple stops making sense fast.
med
backlog conversion delays
You have $13.25B of remaining backlog, which is great for visibility until projects get delayed, repriced, or pushed out. Backlog is not cash. It is signed work that still has to be staffed and finished.
If conversion slows, the path from $17.0B revenue to the $23B fy2029 estimate starts looking crowded.
med
materials and labor costs
Electrical and mechanical construction make up 86% of revenue. That leaves EME exposed to wage pressure, subcontractor tightness, and material costs even before demand weakens.
When net profit margin is 7.0%, small cost misses do real damage.
Most of the risk sits in project execution, not leverage. The company has just $4M of long-term debt, but 86% of its $17.0B revenue base still comes from construction work where margin discipline is everything.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
April 29, 2026 is the next real check. You want proof that the post-Q4 caution was conservative, not the start of a lower-margin phase.
margin
electrical segment profitability
The 280-basis-point drop was the warning shot. Stabilization would calm the story. Another ugly print would change it.
demand
backlog after $13.25B
Flat backlog is manageable if margins recover. Shrinking backlog while the stock still prices in growth is a different problem.
costs
labor and material pressure
With 86% of revenue tied to construction, cost inflation is not background noise. It goes straight into the 7.0% margin structure.
Analyst rankings
earnings predictability
80 / 100
This score suggests results have been steadier than most cyclical project businesses. in human-speak, analysts think emcor usually does a better job of calling its shot than the average contractor.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 425 buyers vs. 392 sellers in 4q2025. total institutional holdings: 43.5M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$570
$1308
$807
current price
$832
target midpoint · +3% from current · 3-5yr high: $1000 (+25% · 6% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive