EMCOR Group Reports 12.7% Revenue Growth to $3.87 Billion in Q1 2025

EMCOR Group, Inc. reported a strong financial performance for the first quarter of 2025, achieving revenues of $3.87 billion, a 12.7% increase from $3.43 billion in the same period last year. The company’s net income rose to $240.7 million, or $5.26 per diluted share, compared to $197.1 million, or $4.17 per diluted share, in the prior year. This growth was driven by robust demand across most market sectors, particularly in the United States electrical and mechanical construction segments, which saw significant contributions from recent acquisitions, including Miller Electric Company.

The company’s operating income also reached a record $318.8 million, representing 8.2% of revenues, up from $260.0 million, or 7.6% of revenues, in the previous year. The increase in operating income was attributed to improved performance in the United States construction segments, enhanced project execution, and a favorable revenue mix. Notably, the acquisition of Miller Electric contributed approximately $14.2 million to operating income, net of amortization expenses.

In terms of operational developments, EMCOR's customer base and project engagement metrics showed positive trends. The company reported a total of $11.75 billion in remaining performance obligations as of March 31, 2025, a significant increase from $10.10 billion at the end of 2024. This growth was largely driven by new contract awards and the addition of approximately $1 billion in remaining performance obligations from the Miller Electric acquisition. The company’s United States electrical construction segment generated $1.09 billion in revenues, while the mechanical construction segment reported $1.57 billion, both reflecting strong demand across various sectors.

Despite the overall positive performance, EMCOR's United States building services segment experienced a decline in revenues, falling to $742.6 million from $781.2 million year-over-year. This decrease was primarily due to the loss of certain facilities maintenance contracts. The company also reported an increase in selling, general, and administrative expenses, which rose to $404.0 million, or 10.4% of revenues, compared to 9.6% in the previous year, largely due to costs associated with acquisitions and increased headcount to support growth.

Looking ahead, EMCOR remains optimistic about its growth trajectory, bolstered by a strong pipeline of projects and strategic acquisitions. The company plans to continue leveraging its operational efficiencies and expanding its market presence, particularly in high-growth sectors such as healthcare and data center construction. With a solid financial foundation and a commitment to enhancing shareholder value through dividends and share repurchases, EMCOR is well-positioned to navigate the evolving market landscape.