EMCOR Q4 EPS $7.19, $4.51B Revenue Beat Estimates as Stock Drops 12%
EMCOR reported Q4 adjusted EPS of $7.19 and revenue of $4.51 billion, topping estimates by 7.6% and 5.4% with 13.8% and 19.7% year-over-year growth, respectively. It guided 2026 revenue of $17.75–$18.5 billion and operating margin of 9–9.4%, supported by a record $13.25 billion backlog and $868.6 million Miller Electric acquisition.
1. Q4 Financial Performance
In its fourth quarter, EMCOR delivered adjusted EPS of $7.19, up 13.8% year-over-year, and revenue of $4.51 billion, a 19.7% increase, surpassing consensus estimates by 7.6% and 5.4%, respectively. Despite strong results, shares fell 12% immediately after the release, reflecting investor concerns over future margins.
2. 2026 Guidance and Outlook
EMCOR set its 2026 revenue target at $17.75 billion to $18.5 billion, with an operating margin range of 9% to 9.4%, down from 10.1% in 2025. The conservative outlook signals potential margin normalization as the company navigates higher interest rates and project timing risks.
3. Backlog and Strategic Moves
Remaining performance obligations climbed 31% year-over-year to a record $13.25 billion at year-end 2025, bolstered by strong public infrastructure demand. Strategic actions include the $868.6 million acquisition of Miller Electric and the $250 million sale of its UK building services unit, enhancing its focus on U.S. markets.