| | | | | | | | |
| | EXHIBIT 99.1 |
| FOR: | | EMCOR GROUP, INC. |
| News Release | | |
| CONTACT: | | Lucas Sullivan Director Financial Planning & Analysis (203) 849-7938
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| | |
| | FTI Consulting, Inc.
Investors: Blake Mueller
(718) 578-3706 |
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EMCOR GROUP, INC. REPORTS RECORD THIRD QUARTER 2026 RESULTS |
|
| Revenues of $5.54 billion, 28.8% Increase Year-over-Year |
| Operating Income of $545.8 million and Operating Margin of 9.8% |
| Non-GAAP Operating Income of $579.8 million and Non-GAAP Operating Margin of 10.5% |
| Diluted EPS of $9.04, 37.6% Increase Year-over-Year |
| Non-GAAP Diluted EPS of $9.60, 46.1% Increase Year-over-Year |
| Remaining Performance Obligations of $18.57 billion, 47.2% Increase Year-over-Year |
| Increases 2026 Revenue Guidance Range to $20.6 billion - $21.0 billion from $20.0 billion - $20.5 billion |
| Increases 2026 Non-GAAP Diluted EPS Guidance Range to $34.50 - $35.50 from $32.00 - $33.25 |
| Increases Share Repurchase Program $500 million |
NORWALK, CONNECTICUT, October 29, 2026 - EMCOR Group, Inc. (NYSE: EME) today reported results for the quarter ended September 30, 2026.
Third Quarter 2026 Results of Operations
For the third quarter of 2026, revenues totaled a quarterly record of $5.54 billion, an increase of 28.8%, compared to revenues of $4.30 billion for the third quarter of 2025. On an organic basis, when adjusting for incremental acquisition contribution and the impact of the sale of the Company's United Kingdom operations in 2025, third quarter revenues increased by 25.5%.
Net income for the third quarter of 2026 was $399.9 million, or $9.04 per diluted share, compared to net income of $295.4 million, or $6.57 per diluted share, for the third quarter of 2025. Net income for the third quarter of 2026 included a non-cash impairment loss on identifiable intangible assets of $34.0 million, or $24.7 million after taxes. Excluding such impairment, non-GAAP net income for the third quarter of 2026 was $424.7 million, or $9.60 per diluted share.
Operating income for the third quarter of 2026 was $545.8 million, or 9.8% of revenues, compared to operating income of $405.7 million, or 9.4% of revenues, for the third quarter of 2025. Excluding the previously referenced impairment loss, non-GAAP operating income for the third quarter of 2026 was $579.8 million, or 10.5% of revenues. Operating income included depreciation and amortization expense (inclusive of amortization of identifiable intangible assets) of $57.3 million and $47.8 million for the third quarter of 2026 and 2025, respectively.
| | | | | |
| EMCOR Reports Third Quarter 2026 Results | Page 2 |
Refer to the attached tables for a reconciliation of organic revenue growth, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share to the comparable GAAP measures.
Selling, general and administrative expenses for the third quarter of 2026 totaled $528.4 million, or 9.5% of revenues, compared to $429.6 million, or 10.0% of revenues, for the third quarter of 2025.
The Company's income tax rate for the third quarter of 2026 was 27.2%, compared to 27.5% for the third quarter of 2025.
Remaining performance obligations (“RPOs”) as of September 30, 2026 were a record $18.57 billion, compared to $12.61 billion as of September 30, 2025, an increase of $5.96 billion year-over-year, due to new contract awards across the majority of the sectors in which the Company operates. The most significant RPO growth occurred within the Network and Communications market sector as mission critical facilities continue to require substantial electrical infrastructure and increasingly sophisticated cooling systems. The Company also benefited from a broad range of customer investments across other large end markets, including the Healthcare, Water and Wastewater, Institutional, and Manufacturing and Industrial sectors.
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented, “EMCOR delivered another quarter of exceptional growth, margin performance, operating cash flow, and capital allocation. Our strong revenue growth, coupled with excellent field execution and improved SG&A leverage, resulted in meaningful expansion of our operating margin. We continued to outgrow the broader non-residential construction market, reinforcing the depth of demand for our services."
First Nine Months 2026 Results of Operations
Revenues for the first nine months of 2026 totaled $15.32 billion, an increase of 22.9%, compared to revenues of $12.47 billion for the first nine months of 2025. On an organic basis, when adjusting for incremental acquisition contribution and the impact of the sale of the Company's United Kingdom operations in 2025, revenues for the first nine months of 2026 increased by 20.8%.
Net income for the first nine months of 2026 was $1.11 billion, or $24.93 per diluted share, compared to net income of $838.2 million, or $18.53 per diluted share, for the first nine months of 2025. Net income for the first nine months of 2026 included a non-cash impairment loss on identifiable intangible assets of $34.0 million, or $24.7 million after taxes. Net income for the first nine months of 2025 included $9.4 million, or $6.9 million after taxes, of transaction related costs associated with the acquisition of Miller Electric Company. Excluding these items, non-GAAP net income for the first nine months of 2026 was $1.13 billion, or $25.48 per diluted share, and non-GAAP net income for the first nine months of 2025 was $845.2 million, or $18.68 per diluted share.
Operating income for the first nine months of 2026 was $1.50 billion, or 9.8% of revenues, compared to operating income of $1.14 billion, or 9.1% of revenues, for the first nine months of 2025. Excluding the previously referenced impairment loss in 2026 and transaction costs in 2025, non-GAAP operating income for the first nine months of 2026 was $1.53 billion, or 10.0% of revenues, and non-GAAP operating income for the first nine months of 2025 was $1.15 billion, or 9.2% of revenues. Operating income included depreciation and amortization expense (inclusive of amortization of identifiable intangible assets) of $164.1 million and $136.4 million for the first nine months of 2026 and 2025, respectively.
| | | | | |
| EMCOR Reports Third Quarter 2026 Results | Page 3 |
Refer to the attached tables for a reconciliation of organic revenue growth, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share to the comparable GAAP measures.
Selling, general and administrative expenses totaled $1.46 billion, or 9.6% of revenues, for the first nine months of 2026, compared to $1.25 billion, or 10.0% of revenues, for the first nine months of 2025.
The Company's income tax rate was 26.6% for the first nine months of 2026, compared to 26.7% for the first nine months of 2025.
Mr. Guzzi continued, “We performed extremely well during the first nine months of 2026, demonstrating the value of our differentiated technical capabilities and strength of our operating model. Our field leaders continued to exhibit discipline and precision while executing some of the industry's largest and most technically complex projects. The expertise of our foremen, superintendents, project managers, and operating leaders drives safe, reliable execution and supports repeat business with our customers. As we close 2026, we remain well-positioned to capitalize on the long-term demand trends supporting our business, while creating further value for our shareholders."
Full-Year 2026 Guidance
Based on the momentum the Company has experienced year-to-date, along with near-term visibility, EMCOR now expects the following for full year 2026:
| | | | | | | | |
| Current Guidance (10/29/26) | Previous Guidance (7/30/26) |
Revenues | $20.6 billion – $21.0 billion | $20.0 billion – $20.5 billion |
Non-GAAP Operating Margin* | ~10% | 9.5% – 9.8% |
Non-GAAP Diluted EPS* | $34.50 – $35.50 | $32.00 – $33.25 |
* Excludes impairment loss on identifiable intangible assets.
Increases Share Repurchase Program
The Company also announced that its Board of Directors has authorized an additional $500 million for the purchase of shares of its outstanding common stock under its existing share repurchase program.
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, remarked, “The increase in our share repurchase authorization reflects our strong financial position, confidence in the long-term prospects of our business, and commitment to balanced and disciplined capital allocation. Our capital allocation strategy supports long-term value creation and has provided the foundation for our compounding record of success."
Repurchases under the program will be funded by the Company’s operations. Shares will be repurchased from time to time on the open market or through privately negotiated transactions at the Company’s discretion, subject to market conditions, and in accordance with applicable regulatory requirements. The share repurchase program has no expiration date and does not obligate the Company to acquire any particular amount of common stock and may be suspended, recommenced, or discontinued at any time or from time to time without prior notice.
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| EMCOR Reports Third Quarter 2026 Results | Page 4 |
Third Quarter 2026 Earnings Conference Call Information
EMCOR Group's third quarter conference call will be broadcast live via the internet today, Thursday, October 29, at 10:30 AM Eastern Daylight Time and can be accessed through the Company's website at www.emcorgroup.com.
About EMCOR
A Fortune 500 company and a member of the S&P 500, EMCOR Group, Inc. is a leader in mechanical and electrical construction services, industrial and energy infrastructure, and building services. This press release and other press releases may be viewed at the Company’s website at www.emcorgroup.com. EMCOR routinely posts information that may be important to investors on the landing page of the Company's website and in the “Investor Relations” section of the website at www.emcorgroup.com/investor-relations. Investors and potential investors are encouraged to consult the EMCOR website regularly for important information about EMCOR.
Forward Looking Statements:
This release and related presentation contain forward-looking statements. Such statements speak only as of October 29, 2026, and EMCOR assumes no obligation to update any such forward-looking statements, unless required by law. These forward-looking statements include statements regarding anticipated future operating and financial performance; financial guidance and projections underlying that guidance; the nature and impact of our remaining performance obligations; the timing of future projects; our ability to support organic growth and balanced capital allocation, including the anticipated impact of our strategic investments; the financial and operational impact of acquisitions and/or dispositions; our competitiveness, market opportunities, and growth prospects; customer trends; and project mix. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated (whether expressly or implied) by the forward-looking statements. Accordingly, these statements do not guarantee future performance or events. Applicable risks and uncertainties include, but are not limited to, adverse effects of general economic conditions; domestic and international political developments and/or conflicts; changes in the specific markets for EMCOR’s services; weakness of the sectors from which we generate revenues; adverse business conditions; scarcity of skilled labor; productivity challenges; the nature and extent of supply chain disruptions impacting availability and pricing of materials; inflationary trends, including fluctuations in energy costs; the impact of legislation, government regulations, permitting requirements, moratoriums, or other governmental actions; changes in foreign trade policy including the effect of tariffs; changes in interest rates; the lack of availability of adequate levels of surety bonding; increased competition; the impact of legal proceedings, claims, lawsuits, or governmental investigations; and unfavorable developments in the mix of our business. Certain of the risk factors associated with EMCOR’s business are also discussed in Part I, Item 1A “Risk Factors,” of the Company’s 2025 Form 10-K, and in other reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov and www.emcorgroup.com. Such risk factors should be taken into account in evaluating our business, including any forward-looking statements.
Non-GAAP Measures:
This release and related presentation also include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this release. The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally. We also believe that these non-GAAP measures provide investors with useful information with respect to our ongoing operations. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by GAAP, have no standardized meaning prescribed by GAAP, and may not be comparable to the calculation of similar measures of other companies.
In addition, forecast non-GAAP diluted earnings per share and non-GAAP operating margin for full-year 2026 are forward-looking non-GAAP financial measures. The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP on a forward-looking basis because such reconciliations are not accessible with reasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of adjustments such as impairments that impact comparability and the periods in which such items may be recognized.
EMCOR GROUP, INC.
FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share information)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the quarters ended
September 30, | | For the nine months ended
September 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| Revenues | | $ | 5,541,520 | | | $ | 4,301,529 | | | $ | 15,324,645 | | | $ | 12,473,301 | |
| Cost of sales | | 4,433,302 | | | 3,466,216 | | | 12,330,098 | | | 10,081,499 | |
| Gross profit | | 1,108,218 | | | 835,313 | | | 2,994,547 | | | 2,391,802 | |
| Selling, general and administrative expenses | | 528,426 | | | 429,617 | | | 1,463,570 | | | 1,252,138 | |
| Impairment loss on identifiable intangible assets | | 34,000 | | | — | | | 34,000 | | | — | |
| Operating income | | 545,792 | | | 405,696 | | | 1,496,977 | | | 1,139,664 | |
| Net periodic pension income | | — | | | 56 | | | — | | | 165 | |
| Interest income, net | | 3,766 | | | 1,838 | | | 14,315 | | | 3,985 | |
| Income before income taxes | | 549,558 | | | 407,590 | | | 1,511,292 | | | 1,143,814 | |
| Income tax provision | | 149,628 | | | 112,217 | | | 402,184 | | | 305,604 | |
| Net income | | $ | 399,930 | | | $ | 295,373 | | | $ | 1,109,108 | | | $ | 838,210 | |
| | | | | | | | |
| Basic earnings per common share | | $ | 9.06 | | | $ | 6.59 | | | $ | 25.00 | | | $ | 18.59 | |
| | | | | | | | |
| Diluted earnings per common share | | $ | 9.04 | | | $ | 6.57 | | | $ | 24.93 | | | $ | 18.53 | |
| | | | | | | | |
| Weighted average shares of common stock outstanding: | | | | | | | | |
| Basic | | 44,118,989 | | | 44,794,790 | | | 44,364,696 | | | 45,078,735 | |
| Diluted | | 44,245,706 | | | 44,968,308 | | | 44,491,534 | | | 45,238,610 | |
| | | | | | | | |
| Dividends declared per common share | | $ | 0.40 | | | $ | 0.25 | | | $ | 1.20 | | | $ | 0.75 | |
| | | | | | | | |
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| | | | | | | | | | | | | | |
| | (Unaudited)
September 30,
2026 | | December 31,
2025 |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 774,752 | | | $ | 1,111,968 | |
| Accounts receivable, net | | 5,529,343 | | | 4,241,177 | |
| Contract assets | | 465,548 | | | 337,717 | |
| Inventories | | 194,549 | | | 126,252 | |
| Prepaid expenses and other | | 106,274 | | | 120,231 | |
| Total current assets | | 7,070,466 | | | 5,937,345 | |
| Property, plant, and equipment, net | | 303,334 | | | 253,277 | |
| Operating lease right-of-use assets | | 526,027 | | | 439,029 | |
| Goodwill | | 1,711,905 | | | 1,412,414 | |
| Identifiable intangible assets, net | | 1,441,074 | | | 1,108,828 | |
| Other assets | | 183,354 | | | 140,506 | |
| Total assets | | $ | 11,236,160 | | | $ | 9,291,399 | |
| LIABILITIES AND EQUITY | | | | |
| Current liabilities: | | | | |
| Accounts payable | | $ | 1,411,866 | | | $ | 1,227,428 | |
| Contract liabilities | | 2,968,666 | | | 2,327,360 | |
| Accrued payroll and benefits | | 1,103,452 | | | 870,154 | |
| Other accrued expenses and liabilities | | 450,865 | | | 340,785 | |
| Operating lease liabilities, current | | 110,543 | | | 99,213 | |
| Total current liabilities | | 6,045,392 | | | 4,864,940 | |
| Operating lease liabilities, long-term | | 449,971 | | | 368,996 | |
| Other long-term obligations | | 463,870 | | | 382,482 | |
| Total liabilities | | 6,959,233 | | | 5,616,418 | |
| Equity: | | | | |
| Total EMCOR Group, Inc. stockholders’ equity | | 4,275,890 | | | 3,673,944 | |
| Noncontrolling interests | | 1,037 | | | 1,037 | |
| Total equity | | 4,276,927 | | | 3,674,981 | |
| Total liabilities and equity | | $ | 11,236,160 | | | $ | 9,291,399 | |
EMCOR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2026 and 2025
(In thousands) (Unaudited)
| | | | | | | | | | | | | | |
| | 2026 | | 2025 |
| Cash flows - operating activities: | | | | |
| Net income | | $ | 1,109,108 | | | $ | 838,210 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
| Depreciation and amortization | | 57,962 | | | 49,426 | |
| Amortization of identifiable intangible assets | | 106,164 | | | 86,967 | |
| Provision for credit losses | | 6,183 | | | 5,402 | |
| Deferred income taxes | | (19,236) | | | 8,930 | |
| Excess tax benefits from share-based compensation | | (8,011) | | | (4,250) | |
| Non-cash expense for impairment of identifiable intangible assets | | 34,000 | | | — | |
| Non-cash share-based compensation expense | | 19,695 | | | 16,742 | |
| Other reconciling items | | 1,392 | | | (2,038) | |
| Changes in operating assets and liabilities, excluding the effect of businesses acquired | | (220,626) | | | (221,730) | |
| Net cash provided by operating activities | | 1,086,631 | | | 777,659 | |
| Cash flows - investing activities: | | | | |
| Payments for acquisitions of businesses, net of cash acquired | | (797,375) | | | (900,496) | |
| Proceeds from sale or disposal of property, plant, and equipment | | 2,469 | | | 3,608 | |
| Purchases of property, plant, and equipment | | (97,014) | | | (80,831) | |
| Net cash used in investing activities | | (891,920) | | | (977,719) | |
| Cash flows - financing activities: | | | | |
| Proceeds from revolving credit facility | | 150,000 | | | 525,000 | |
| Repayments of revolving credit facility | | (150,000) | | | (525,000) | |
| Repayments of finance lease liabilities | | (2,016) | | | (2,082) | |
| Dividends paid to stockholders | | (53,251) | | | (33,832) | |
| Repurchases of common stock | | (456,501) | | | (432,165) | |
| Taxes paid related to net share settlements of equity awards | | (18,401) | | | (14,054) | |
| Payments for contingent consideration arrangements | | (1,758) | | | (12,038) | |
| Distributions to noncontrolling interests | | — | | | (856) | |
| Net cash used in financing activities | | (531,927) | | | (495,027) | |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | — | | | 11,009 | |
| Decrease in cash, cash equivalents, and restricted cash | | (337,216) | | | (684,078) | |
Cash, cash equivalents, and restricted cash at beginning of year (1) | | 1,111,968 | | | 1,340,395 | |
Cash, cash equivalents, and restricted cash at end of period (2) | | $ | 774,752 | | | $ | 656,317 | |
_________
(1)Includes $0.8 million of restricted cash classified as “Prepaid expenses and other” in the Consolidated Balance Sheet as of December 31, 2024.
(2)Includes $1.2 million of restricted cash classified as “Assets held for sale” in the Consolidated Balance Sheet as of September 30, 2025.
EMCOR GROUP, INC.
SEGMENT INFORMATION
(In thousands, except for percentages) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the quarters ended September 30, |
| | 2026 | | % of
Total | | 2025 | | % of
Total |
| Revenues from unrelated entities: | | | | | | | | |
| United States electrical construction and facilities services | | $ | 1,854,963 | | | 34 | % | | $ | 1,285,269 | | | 30 | % |
| United States mechanical construction and facilities services | | 2,546,679 | | | 46 | % | | 1,779,279 | | | 41 | % |
| United States building services | | 852,369 | | | 15 | % | | 813,879 | | | 19 | % |
| United States industrial services | | 287,509 | | | 5 | % | | 286,914 | | | 7 | % |
| Total United States operations | | 5,541,520 | | | 100 | % | | 4,165,341 | | | 97 | % |
| United Kingdom building services | | — | | | — | % | | 136,188 | | | 3 | % |
| Consolidated revenues | | $ | 5,541,520 | | | 100 | % | | $ | 4,301,529 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the nine months ended September 30, |
| | 2026 | | % of
Total | | 2025 | | % of
Total |
| Revenues from unrelated entities: | | | | | | | | |
| United States electrical construction and facilities services | | $ | 4,964,878 | | | 32 | % | | $ | 3,713,360 | | | 30 | % |
| United States mechanical construction and facilities services | | 6,873,893 | | | 45 | % | | 5,107,139 | | | 41 | % |
| United States building services | | 2,462,724 | | | 16 | % | | 2,349,761 | | | 19 | % |
| United States industrial services | | 1,023,150 | | | 7 | % | | 926,988 | | | 7 | % |
| Total United States operations | | 15,324,645 | | | 100 | % | | 12,097,248 | | | 97 | % |
| United Kingdom building services | | — | | | — | % | | 376,053 | | | 3 | % |
| Consolidated revenues | | $ | 15,324,645 | | | 100 | % | | $ | 12,473,301 | | | 100 | % |
EMCOR GROUP, INC.
SEGMENT INFORMATION
(In thousands, except for percentages) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the quarters ended September 30, |
| | 2026 | | % of Segment Revenues | | 2025 | | % of Segment Revenues |
| Operating income (loss): | | | | | | | | |
| United States electrical construction and facilities services | | $ | 247,003 | | | 13.3 | % | | $ | 145,200 | | | 11.3 | % |
| United States mechanical construction and facilities services | | 308,238 | | | 12.1 | % | | 229,296 | | | 12.9 | % |
| United States building services | | 66,193 | | | 7.8 | % | | 59,390 | | | 7.3 | % |
| United States industrial services | | 5,120 | | | 1.8 | % | | 6,292 | | | 2.2 | % |
| Total United States operations | | 626,554 | | | 11.3 | % | | 440,178 | | | 10.6 | % |
| United Kingdom building services | | — | | | — | | | 7,563 | | | 5.6 | % |
| Corporate administration | | (46,762) | | | — | | | (42,045) | | | — | |
| Impairment loss on identifiable intangible assets | | (34,000) | | | — | | | — | | | — | |
| Consolidated operating income | | 545,792 | | | 9.8 | % | | 405,696 | | | 9.4 | % |
| Other items: | | | | | | | | |
| Net periodic pension income | | — | | | | | 56 | | | |
| Interest income, net | | 3,766 | | | | | 1,838 | | | |
| Income before income taxes | | $ | 549,558 | | | | | $ | 407,590 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the nine months ended September 30, |
| | 2026 | | % of Segment Revenues | | 2025 | | % of Segment Revenues |
| Operating income (loss): | | | | | | | | |
| United States electrical construction and facilities services | | $ | 652,901 | | | 13.2 | % | | $ | 438,901 | | | 11.8 | % |
| United States mechanical construction and facilities services | | 816,520 | | | 11.9 | % | | 654,780 | | | 12.8 | % |
| United States building services | | 170,017 | | | 6.9 | % | | 145,858 | | | 6.2 | % |
| United States industrial services | | 27,499 | | | 2.7 | % | | 12,633 | | | 1.4 | % |
| Total United States operations | | 1,666,937 | | | 10.9 | % | | 1,252,172 | | | 10.4 | % |
| United Kingdom building services | | — | | | — | | | 20,975 | | | 5.6 | % |
| Corporate administration | | (135,960) | | | — | | | (133,483) | | | — | |
| Impairment loss on identifiable intangible assets | | (34,000) | | | — | | | — | | | — | |
| Consolidated operating income | | 1,496,977 | | | 9.8 | % | | 1,139,664 | | | 9.1 | % |
| Other items: | | | | | | | | |
| Net periodic pension income | | — | | | | | 165 | | | |
| Interest income, net | | 14,315 | | | | | 3,985 | | | |
| Income before income taxes | | $ | 1,511,292 | | | | | $ | 1,143,814 | | | |
EMCOR GROUP, INC.
RECONCILIATION OF ORGANIC REVENUE GROWTH
(In thousands, except for percentages) (Unaudited)
The following table provides a reconciliation between organic revenue growth, a non-GAAP measure, and total revenue growth for the quarter and nine months ended September 30, 2026.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the quarter ended
September 30, 2026 | | For the nine months ended
September 30, 2026 |
| | $ | | % | | $ | | % |
| GAAP revenue growth | | $ | 1,239,991 | | | 28.8 | % | | $ | 2,851,344 | | | 22.9 | % |
| Incremental revenues from acquisitions | | (313,275) | | | (7.3) | % | | (716,608) | | | (5.7) | % |
Impact of lost revenues resulting from sale of
United Kingdom operations | | 136,188 | | | 4.0 | % | | 376,053 | | | 3.6 | % |
| Organic revenue growth, a non-GAAP measure | | $ | 1,062,904 | | | 25.5 | % | | $ | 2,510,789 | | | 20.8 | % |
EMCOR GROUP, INC.
RECONCILIATION OF OTHER NON-GAAP MEASURES
(In thousands, except for percentages and per share data) (Unaudited)
In our press release, we provide non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per common share for the quarter and nine months ended September 30, 2026 and 2025. The following tables provide a reconciliation between these amounts determined on a non-GAAP basis and the most directly comparable GAAP measures.
| | | | | | | | | | | | | | | | | | | | | | | |
| For the quarter ended
September 30, | | For the nine months ended
September 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| GAAP operating income | $ | 545,792 | | | $ | 405,696 | | | $ | 1,496,977 | | | $ | 1,139,664 | |
| Impairment loss on identifiable intangible assets | 34,000 | | | — | | | 34,000 | | | — | |
| Transaction expenses related to the acquisition of Miller Electric | — | | | — | | | — | | | 9,353 | |
| Non-GAAP operating income | $ | 579,792 | | | $ | 405,696 | | | $ | 1,530,977 | | | $ | 1,149,017 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the quarter ended
September 30, | | For the nine months ended
September 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| GAAP operating margin | 9.8 | % | | 9.4 | % | | 9.8 | % | | 9.1 | % |
| Impairment loss on identifiable intangible assets | 0.6 | % | | — | % | | 0.2 | % | | — | % |
| Transaction expenses related to the acquisition of Miller Electric | — | % | | — | % | | — | % | | 0.1 | % |
| Non-GAAP operating margin | 10.5 | % | | 9.4 | % | | 10.0 | % | | 9.2 | % |
________________________Amounts presented in this table may not foot due to rounding.
| | | | | | | | | | | | | | | | | | | | | | | |
| For the quarter ended
September 30, | | For the nine months ended
September 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| GAAP net income | $ | 399,930 | | | $ | 295,373 | | | $ | 1,109,108 | | | $ | 838,210 | |
| Impairment loss on identifiable intangible assets | 34,000 | | | — | | | 34,000 | | | — | |
| Tax effect of impairment loss on identifiable intangible assets | (9,257) | | | — | | | (9,257) | | | — | |
| Transaction expenses related to the acquisition of Miller Electric | — | | | — | | | — | | | 9,353 | |
Tax effect of transaction expenses related to the acquisition of
Miller Electric | — | | | — | | | — | | | (2,410) | |
| Non-GAAP net income | $ | 424,673 | | | $ | 295,373 | | | $ | 1,133,851 | | | $ | 845,153 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the quarter ended
September 30, | | For the nine months ended
September 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| GAAP diluted earnings per common share | $ | 9.04 | | | $ | 6.57 | | | $ | 24.93 | | | $ | 18.53 | |
| Impairment loss on identifiable intangible assets | 0.77 | | | — | | | 0.76 | | | — | |
| Tax effect of impairment loss on identifiable intangible assets | (0.21) | | | — | | | (0.21) | | | — | |
| Transaction expenses related to the acquisition of Miller Electric | — | | | — | | | — | | | 0.20 | |
Tax effect of transaction expenses related to the acquisition of
Miller Electric | — | | | — | | | — | | | (0.05) | |
| Non-GAAP diluted earnings per common share | $ | 9.60 | | | $ | 6.57 | | | $ | 25.48 | | | $ | 18.68 | |
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