EMCOR Q3 revenue beats on new contract awards; raises 2026 outlook

Overview

• US mechanical and electrical contractor's Q3 revenue rose 29% yr/yr, beating analyst expectations

• Non-GAAP diluted EPS for Q3 rose 46% yr/yr

• Company raised 2026 revenue and non-GAAP EPS guidance, expanded share repurchase by $500 mln

Outlook

• EMCOR raises 2026 revenue guidance to $20.6 bln–$21.0 bln from $20.0 bln–$20.5 bln

• Company lifts 2026 non-GAAP diluted EPS guidance to $34.50–$35.50 from $32.00–$33.25

• EMCOR expects full-year 2026 non-GAAP operating margin of about 10%

Result Drivers

• NEW CONTRACT AWARDS - Record remaining performance obligations driven by new contract awards across most sectors

• NETWORK AND COMMUNICATIONS DEMAND - Most significant RPO growth occurred in Network and Communications market sector as mission critical facilities require substantial electrical infrastructure and advanced cooling

• FIELD EXECUTION AND SG&A LEVERAGE - Co said strong field execution and improved SG&A leverage contributed to margin expansion, per CEO Tony Guzzi

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for EMCOR Group, Inc. is $1,044.17, about 53.9% above its October 28 closing price of $678.55

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• Oct 29 - Quanta Services Q3 revenue beats on broadening demand; raises 2026 outlook

• Oct 29 - Trane Technologies Q3 revenue beats estimates on booking growth; raises guidance

• Oct 28 - Vertiv beats Q3 revenue, profit estimates; raises FY guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)