EMCOR Posts 19.7% Q4 Revenue Growth to $4.5B, RPO Reaches $13.25B
EMCOR Group delivered 19.7% fourth-quarter revenue growth to $4.5 billion and raised adjusted diluted EPS by 13.8% to $7.19, driven by 45.8% electrical construction and 17% mechanical construction increases. Remaining performance obligations climbed to $13.25 billion, and 2026 revenue guidance of $17.75–$18.5 billion implies continued robust demand.
1. Fourth-Quarter Performance
EMCOR reported fourth-quarter revenue of $4.5 billion, a 19.7% increase over prior year, driven by 45.8% growth in electrical construction to $1.36 billion and 17% growth in mechanical construction to $1.94 billion. Adjusted operating income rose 13.1% to $440 million, and adjusted diluted EPS climbed 13.8% to $7.19.
2. Record Backlog and RPO
Remaining performance obligations reached $13.25 billion at year-end, up from $10.1 billion, with network and communications RPO jumping nearly 60% to $4.46 billion. Management highlighted strong visibility into data center capex plans and broad end-market demand across manufacturing, institutional and water projects.
3. Capital Allocation and Balance Sheet
EMCOR ended the quarter with $1.1 billion of cash and repurchased $155 million of shares, bringing full-year buybacks to $580 million while raising its dividend by 60% and authorizing an additional $500 million of repurchases. The company continues to target conservative leverage and pursue strategic tuck-in acquisitions aligned with its core businesses.
4. 2026 Outlook
Guidance projects revenue of $17.75–$18.5 billion and diluted EPS of $27.25–$29.25, implying mid-single-digit earnings growth. Management expects continued strength in network and communications projects and disciplined margin execution within a tight operating margin range.