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EMCOR Group
(NYSE:EME)
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Rating:80Outperform
Price Target:
$921.00
▲(23.65% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial performance (multi-year growth, expanding margins, low leverage, and high ROE) and a very positive latest earnings update (raised guidance and record RPOs supporting visibility). Offsetting factors are a more growth-priced valuation (P/E 23.709 with a low dividend yield) and only moderate technical trend confirmation given limited momentum-indicator data.
Positive Factors
Revenue and Margin Expansion
Multi-year revenue growth and sustained margin expansion indicate stronger execution, pricing, and operating leverage. This improves earnings capacity and provides a durable foundation if construction demand normalizes after recent expansion.
Negative Factors
Mechanical Margin Compression
A higher mix of construction-manager, prime, GMP, and cost-plus contracts can structurally produce lower margins than fixed-price work. Continued mix pressure could limit consolidated margin expansion even while revenue and backlog grow.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Multi-year revenue growth and sustained margin expansion indicate stronger execution, pricing, and operating leverage. This improves earnings capacity and provides a durable foundation if construction demand normalizes after recent expansion.
Read all positive factors
EMCOR Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across EMCOR’s business lines (e.g., mechanical construction, facilities services, electrical), revealing which segments drive growth, where demand is strongest, and how changes in end markets or contract mix may affect overall revenue stability.
Breaks down sales across EMCOR’s business lines (e.g., mechanical construction, facilities services, electrical), revealing which segments drive growth, where demand is strongest, and how changes in end markets or contract mix may affect overall revenue stability.
Data provided by:
The Fly
The FlyEMCOR Group (EME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.37B
Dividend Yield0.18%
Average Volume (3M)455.77K
Price to Earnings (P/E)25.2
Beta (1Y)1.39
Revenue Growth18.92%
EPS Growth33.51%
CountryUS
Employees44,000
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)31.99
Shares Outstanding44,109,900
10 Day Avg. Volume481,118
30 Day Avg. Volume455,766
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,052.50Price Target Upside41.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)32.51
Revenue Forecast (FY)$20.18B
EMCOR Group Business Overview & Revenue Model
Company Description
EMCOR Group, Inc. (EME) is a U.S.-based specialty contractor that provides mechanical and electrical construction, facilities services, and building/industrial infrastructure solutions. Through its operating subsidiaries, the company delivers serv...
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance: record revenue, record RPOs, expanding operating income and EPS, meaningful gross-profit and SG&A leverage, and raised full-year guidance. Segment-level outperformance (notably Electrical and Mechanical Construction and Building Services) and strategic acquisitions underpin growth and visibility. Key challenges are principally mix- and timing-driven (mechanical margin compression due to contract mix, longer RPO burn timing), near-term EPS moderation from acquisition-related amortization, and external macro/supply-chain/geopolitical risks that could affect late-year activity. Overall, the positives (record results, strong bookings, raised guidance, solid balance sheet and cash flow) significantly outweigh the outlined headwinds.Positive Updates
Record Quarterly Revenue
Total revenues of $5.15 billion in Q2 2026, up 19.8% year-over-year (19.6% organic), establishing a quarterly record for the company.
Negative Updates
Mechanical Construction Margin Compression
Mechanical Construction operating margin declined ~110 basis points versus prior year to 12.5%, attributed to project mix shifts (greater construction manager/prime roles, increased GMP/cost-plus contracts) that carry lower gross margin.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenues of $5.15 billion in Q2 2026, up 19.8% year-over-year (19.6% organic), establishing a quarterly record for the company.
Read all positive updates
Company Guidance
EMCOR raised full‑year 2026 guidance, now expecting revenue of $20.0–$20.5 billion and diluted EPS of $32.00–$33.25, citing a strong first half and record RPOs of $17.14 billion (up 44% YoY, +29% since December, +10% sequential from March, 95% organic). Second‑quarter metrics underpinning the outlook included revenues of $5.15 billion (+19.8% YoY; +19.6% organic), operating income of $547.3 million (10.6% margin), diluted EPS of $9.06 (+35% YoY), gross profit of $1.02 billion (+22.6%; 19.8% margin, +40 bps), SG&A of $475 million (9.2% of revenues, -50 bps), and operating cash flow of $289.4 million in the quarter; balance sheet liquidity included $924 million of cash and $1.45 billion of working capital. Management also noted five recent electrical acquisitions that generated $625 million of trailing‑12‑month revenue and $105 million of EBITDA and are expected to contribute $250–$275 million of revenue in H2, with limited near‑term EPS dilution from acquisition amortization.EMCOR Group Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.60B | 16.99B | 14.57B | 12.58B | 11.08B | 9.90B |
| Gross Profit | 3.66B | 3.33B | 2.77B | 2.09B | 1.60B | 1.50B |
| EBITDA | 2.23B | 1.99B | 1.51B | 1.01B | 680.56M | 647.81M |
| Net Income | 1.44B | 1.27B | 1.01B | 632.99M | 406.12M | 383.53M |
Balance Sheet | ||||||
| Total Assets | 10.16B | 9.60B | 7.72B | 6.61B | 5.52B | 5.44B |
| Cash, Cash Equivalents and Short-Term Investments | 924.41M | 1.11B | 1.34B | 789.75M | 456.44M | 821.35M |
| Total Debt | 6.10M | 843.55M | 348.92M | 345.27M | 535.17M | 540.34M |
| Total Liabilities | 6.08B | 5.93B | 4.78B | 4.14B | 3.55B | 3.19B |
| Stockholders Equity | 4.08B | 3.67B | 2.94B | 2.47B | 1.97B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | 1.17B | 1.19B | 1.33B | 821.25M | 448.64M | 282.63M |
| Operating Cash Flow | 1.29B | 1.30B | 1.41B | 899.65M | 497.93M | 318.82M |
| Investing Cash Flow | -87.52M | -873.59M | -299.28M | -161.29M | -140.80M | -153.08M |
| Financing Cash Flow | -757.35M | -663.76M | -555.37M | -412.05M | -710.12M | -245.46M |
EMCOR Group Technical Analysis
Neutral
744.85
Price Trends
798.02
Positive
820.55
Negative
752.18
Positive
Market Momentum
12.73
Negative
50.19
Neutral
49.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EME, the sentiment is Neutral. The current price of 744.85 is below the 20-day moving average (MA) of 796.98, below the 50-day MA of 798.02, and below the 200-day MA of 752.18, indicating a bullish trend. The MACD of 12.73 indicates Negative momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $18.66B | -63.45 | 10.11% | ― | 14.09% | -293.77% | |
80 Outperform | $36.37B | 25.19 | 38.42% | 0.19% | 18.92% | 33.51% | |
77 Outperform | $61.21B | 41.67 | 53.55% | 0.15% | 46.11% | 108.71% | |
73 Outperform | $104.66B | 76.63 | 14.86% | 0.07% | 26.30% | 34.94% | |
70 Outperform | $16.72B | 51.35 | 9.81% | 1.01% | 20.03% | -28.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $7.94B | 29.43 | 12.54% | 1.69% | -4.24% | -44.22% |
* General Sector Average
EME
EMCOR Group
805.78
196.14
32.17%
ACM
Aecom
65.04
-54.94
-45.79%
FIX
Comfort Systems
1,696.06
1,003.48
144.89%
J
Jacobs Solutions
147.37
1.56
1.07%
PWR
Quanta Services
677.41
299.52
79.26%
APG
APi Group
42.51
7.07
19.95%
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.