EMCOR Group, Inc. (EME)
NYSE:EME
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EMCOR Group
(NYSE:EME)
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Rating:77Outperform
Price Target:
$953.00
▲(18.23% Upside)
Action:Reiterated
Date:06/05/26
The score is driven mainly by strong financial performance (expanded margins, high ROE, solid cash conversion) and a very positive earnings call with raised guidance and surging RPO/backlog. Offsetting factors are weaker near-term technical momentum (negative MACD, price below 20-day average) and a less compelling valuation setup (P/E ~28 with a very low dividend yield).
Positive Factors
Revenue and margin expansion
EMCOR has delivered sustained top-line growth and expanding margins over multiple years, showing durable scale benefits. Higher operating and net margins indicate improved pricing, execution and cost control, which support long‑term profitability even as cyclical projects vary.
Negative Factors
Mechanical construction margin pressure
A structural shift toward construction‑manager, GMP and cost‑plus work tends to lower gross margins and increase variability. If this mix persists, long‑run margin sustainability will require offsetting pricing, productivity gains, or higher‑margin service cross‑sell to avoid earnings dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
EMCOR has delivered sustained top-line growth and expanding margins over multiple years, showing durable scale benefits. Higher operating and net margins indicate improved pricing, execution and cost control, which support long‑term profitability even as cyclical projects vary.
Read all positive factors
EMCOR Group Key Performance Indicators (KPIs)
EMCOR Group (EME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.57B
Dividend Yield0.16%
Average Volume (3M)378.83K
Price to Earnings (P/E)27.6
Beta (1Y)1.37
Revenue Growth18.31%
EPS Growth31.81%
CountryUS
Employees40,400
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)29.77
Shares Outstanding44,440,277
10 Day Avg. Volume363,314
30 Day Avg. Volume378,831
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)7.50
Price to Sales (P/S)1.62
P/FCF Ratio23.17
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit10.50
Enterprise Value/Ebitda17.91
Forecast
1Y Price Target
$942.20Price Target Upside16.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)29.34
Revenue Forecast (FY)$18.98B
EMCOR Group Business Overview & Revenue Model
Company Description
EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, starts-up, operation, and maintenance services related t...
How the Company Makes Money
EMCOR primarily makes money by delivering contracted construction and service work through its network of operating companies. A large portion of revenue comes from project-based work—installing, upgrading, or replacing electrical and mechanical s...
EMCOR Group Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed very strong operational and financial momentum: record quarterly revenue, operating income, EPS growth, a sizable increase in RPOs and raised full-year guidance. Most segments—especially construction and data-center related businesses—delivered exceptional top-line growth. Headwinds were mostly execution- and mix-related (mechanical margin pressure, increased GMP work), temporary cash-flow seasonality, and supervisory labor constraints. On balance, the positives (robust revenue and profitability gains, healthy backlog and guidance raise) materially outweigh the manageable challenges.Positive Updates
Record Quarterly Revenue
Revenues of $4.63 billion in Q1 2026, a year-over-year increase of 19.7% (organic growth of 16.8% after adjusting for acquisitions and the EMCOR U.K. sale).
Negative Updates
Mechanical Construction Margin Pressure
Mechanical Construction operating margin declined to 10.9% from 11.9% a year ago (≈100 bps decrease) due to mix shift toward construction manager/prime roles, increased GMP/cost-plus projects and evolving design scope that carry lower gross-profit markups.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenues of $4.63 billion in Q1 2026, a year-over-year increase of 19.7% (organic growth of 16.8% after adjusting for acquisitions and the EMCOR U.K. sale).
Read all positive updates
Company Guidance
EMCOR raised its full‑year 2026 guidance to revenues of $18.5–$19.25 billion and diluted EPS of $28.25–$29.75, citing strong Q1 results (Q1 revenue $4.63 billion, +19.7% YoY / +16.8% organic; operating income $403.8 million, 8.7% margin; diluted EPS $6.84, +30% YoY) and robust visibility from RPOs of $15.62 billion (up 32.9% YoY and 17.9% sequentially); management said roughly 30% of 2026 work still needs to be booked, expects continued strong operating margins (pointing to last year’s 9.4% as a relevant benchmark) and believes full‑year operating cash flow will be at least equal to net income or roughly 80–85% of operating income.EMCOR Group Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
83
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.75B | 16.99B | 14.57B | 12.58B | 11.08B | 9.90B |
| Gross Profit | 3.47B | 3.33B | 2.77B | 2.09B | 1.60B | 1.50B |
| EBITDA | 2.03B | 1.99B | 1.51B | 1.01B | 680.56M | 647.81M |
| Net Income | 1.33B | 1.27B | 1.01B | 632.99M | 406.12M | 383.53M |
Balance Sheet | ||||||
| Total Assets | 9.51B | 9.60B | 7.72B | 6.61B | 5.52B | 5.44B |
| Cash, Cash Equivalents and Short-Term Investments | 916.42M | 1.11B | 1.34B | 789.75M | 456.44M | 821.35M |
| Total Debt | 516.52M | 843.55M | 348.92M | 345.27M | 535.17M | 540.34M |
| Total Liabilities | 5.64B | 5.93B | 4.78B | 4.14B | 3.55B | 3.19B |
| Stockholders Equity | 3.87B | 3.67B | 2.94B | 2.47B | 1.97B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 1.19B | 1.33B | 821.25M | 448.64M | 282.63M |
| Operating Cash Flow | 1.19B | 1.30B | 1.41B | 899.65M | 497.93M | 318.82M |
| Investing Cash Flow | -69.89M | -873.59M | -299.28M | -161.29M | -140.80M | -153.08M |
| Financing Cash Flow | -787.29M | -663.76M | -555.37M | -412.05M | -710.12M | -245.46M |
EMCOR Group Technical Analysis
Negative
806.05
Price Trends
841.56
Negative
790.25
Positive
715.62
Positive
Market Momentum
-8.74
Positive
38.77
Neutral
32.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EME, the sentiment is Negative. The current price of 806.05 is below the 20-day moving average (MA) of 868.98, below the 50-day MA of 841.56, and above the 200-day MA of 715.62, indicating a neutral trend. The MACD of -8.74 indicates Positive momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 32.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EME.
EMCOR Group Risk Analysis
EMCOR Group disclosed 1 risk factors in its most recent earnings report. EMCOR Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EMCOR Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $67.40B | 53.05 | 51.69% | 0.20% | 38.43% | 107.64% | |
78 Outperform | $107.92B | 93.32 | 13.03% | 0.09% | 21.09% | 17.37% | |
77 Outperform | $37.57B | 27.59 | 38.34% | 0.16% | 18.31% | 31.81% | |
65 Neutral | $18.54B | 55.84 | 9.71% | ― | 14.55% | -303.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $9.34B | 18.11 | 21.32% | 1.06% | -0.38% | 2.58% | |
60 Neutral | $14.59B | 37.82 | 10.82% | 0.94% | 0.95% | -10.51% |
* Industrials Sector Average
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EMCOR Group Corporate Events
Executive/Board ChangesShareholder Meetings
EMCOR Shareholders Reelect Board and Approve Executive Pay
Positive
Jun 4, 2026
At EMCOR Group’s June 4, 2026 annual meeting, shareholders re-elected all nine incumbent directors, affirming the existing board leadership for another term. The strong support across all director nominees suggests continuity in the company&...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.