Core Insights - EMCOR Group, Inc. (NYSE: EME) is highlighted as a strong investment opportunity, particularly in the context of infrastructure electrification, with significant upside potential noted by analysts [1][2]. Financial Performance - EMCOR reported revenues of $4.3 billion, indicating robust financial health and performance that exceeded expectations [2][3]. - The company achieved a 45% return, showcasing its strong market performance and operational success [3]. Market Position and Strategy - EMCOR is positioned as a "pick and shovel" company for infrastructure electrification, suggesting it plays a critical role in the ongoing electrification trends [2]. - The company serves a diverse range of customers, including commercial, industrial, utility, and institutional sectors, which enhances its market resilience [3]. Future Outlook - Analysts believe that EMCOR has potential not just for the short term but also for the next several years, indicating a long-term growth trajectory [2]. - The company has a record high level of remaining performance obligations, which reflects a healthy backlog of work and a strong pipeline of new projects [3].

Core Insights - Emcor Group's shares dropped 17% despite beating analyst expectations for revenue and earnings per share (EPS) due to insufficient forward guidance after a significant stock increase of 70% in 2025 [1][2][9] Financial Performance - In Q3, Emcor reported a revenue increase of 16.4% to $4.3 billion and EPS growth of 13.3% to $6.57, both surpassing analyst forecasts, although there was slight margin compression [3] - The Electrical Construction & Facilities Services segment experienced a remarkable growth of 52.1%, while other segments grew in the low-to-mid-single digits [3] Guidance and Expectations - Management's full-year revenue guidance is now between $16.7 billion and $16.8 billion, compared to the previous range of $16.4 billion to $16.9 billion, indicating a wider range but maintaining the upper limit [4] - The bottom end of the EPS estimate was raised, but the top end remained unchanged at $25.75, which did not meet investor expectations [4] Long-term Contracts - Remaining performance obligations, which represent long-term contracts yet to be fulfilled, increased by 29% to a record high of $12.61 billion, indicating strong future revenue potential [5] Valuation and Market Position - Following the stock's decline, shares are trading at 25.6 times 2025 earnings estimates, which is considered reasonable given the company's potential benefits from data center demand [7] - The AI-exposed electrical segment constitutes about 31% of Emcor's U.S. operations, suggesting that as this segment grows, overall growth may stabilize or accelerate [8]

Core Insights - EMCOR Group, Inc. (EME) reported mixed third-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but showing year-over-year growth [1][10]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were $6.57, missing the consensus estimate of $6.65 by 1.2%, while year-ago EPS was $5.80 [5]. - Revenues totaled $4.30 billion, falling short of the consensus mark of $4.32 billion by 0.4%, but representing a 16.4% increase from $3.70 billion in the prior year [5]. - Organic revenues increased by 8.1% year over year [5]. Segment Performance - U.S. Construction Services segment revenues grew 22.2% year over year to $3.06 billion, with operating income increasing by 12.1% [6]. - U.S. Electrical Construction and Facilities Services saw a 52.1% revenue increase to $1.29 billion, while U.S. Mechanical Construction and Facilities Services revenues rose 7% to $1.78 billion [7]. - U.S. Building Services revenues increased by 2.1% to $813.9 million, and U.S. Industrial Services revenues inched up 0.2% to $286.9 million [8]. - U.K. Building Services revenues rose 28.1% to $136.2 million [9]. Operational Highlights - Remaining performance obligations (RPOs) reached $12.61 billion, indicating strong demand and a robust pipeline [3][12]. - Gross margin contracted by 50 basis points year over year to 19.4%, while operating margin decreased by 40 basis points to 9.4% [11]. Liquidity and Cash Flow - As of September 31, 2025, cash and cash equivalents stood at $655.1 million, down from $1.34 billion at the end of 2024 [12]. - Net cash provided by operating activities was $777.7 million for the first nine months of 2025, compared to $938.4 million in the prior year [12]. Revised Outlook - EMCOR revised its full-year revenue outlook to a range of $16.7-$16.8 billion, up from the previous expectation of $16.4-$16.9 billion [13]. - EPS is now projected to be between $25-$25.75, an increase from the prior estimate of $24.50-$25.75 [13]. - Operating margin expectations were adjusted to between 9.2% and 9.4% [13].

Financial Data and Key Metrics Changes - The company reported diluted EPS of $6.57 and revenues of $4.3 billion, representing a 16.4% increase from the prior year period [6][13] - Operating margin was exceptional at 9.4%, with strong operating cash flow of $475.5 million [6][24] - The book-to-bill ratio was 1.16, with record RPOs at $12.6 billion, an increase of $2.8 billion year over year [7][10] Business Line Data and Key Metrics Changes - U.S. electrical construction revenues were $1.29 billion, increasing by 52.1% due to strong organic growth and the acquisition of Miller Electric [15] - U.S. mechanical construction revenues reached a record $1.78 billion, up 7% primarily through organic growth driven by data center demand [16] - U.S. building services revenues were $813.9 million, reflecting a 2.1% increase year over year, with mechanical services growing by 5.8% [17] - Industrial services revenues were $286.9 million, consistent with the previous year, while UK building services generated revenues of $136.2 million, up 28.1% [18] Market Data and Key Metrics Changes - RPOs within network and communications totaled a record $4.3 billion, almost double the year-ago period [10] - Healthcare RPOs totaled $1.3 billion, with nearly 7% growth year over year due to the acquisition of Miller Electric [11] - Manufacturing and industrial RPOs reached $1.1 billion, benefiting from onshoring and reshoring initiatives [11] Company Strategy and Development Direction - The company is focused on capital allocation with discipline, having allocated over $430 million on share repurchases and $900 million for acquisitions in the first nine months of 2025 [7] - The sale of the UK business for approximately $255 million is expected to close by year-end, allowing the company to sharpen its focus on core U.S. markets [25][26] - The acquisition of John W. Danforth Company is anticipated to add $350 million to $400 million in revenues, enhancing capabilities in data centers and healthcare [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong operating margins and the diverse demand across sectors, particularly in data centers, healthcare, and traditional manufacturing [29] - There is acknowledgment of macroeconomic uncertainties, including tariffs and trade issues, but the company remains disciplined in capital allocation [29] - The guidance for 2025 revenue has been updated to a range of $16.7 to $16.8 billion, reflecting business momentum while adjusting for the anticipated sale of the UK segment [28] Other Important Information - Gross profit increased by 13.7% to $835.3 million, with a gross profit margin of 19.4% [22] - SG&A expenses increased by $58.4 million, primarily due to incremental expenses from acquired companies and increased headcount to support growth [22] Q&A Session Summary Question: Margin profile this quarter - Management noted that the operating margins are among the strongest seen, with electrical margins expected to be over 14% without amortization headwinds [36][37] Question: Strength in other sectors outside data centers - Management highlighted strong growth in mechanical services, healthcare, and traditional manufacturing, indicating broad-based demand [40][41] Question: Impact of geographic investments on margins - Management confirmed a $13 million impact on margins due to geographic investments, indicating ongoing adjustments in the portfolio [57] Question: Capital allocation and lack of buybacks - Management clarified that the lack of buybacks was due to prior execution and a balanced approach to capital allocation, with no constraints on capital [67][70] Question: Organic growth expectations - Management indicated that high single digits to low double digits organic growth is a comfortable expectation, considering the size of the company [74][75] Question: Larger individual bookings in network and communications - Management confirmed that contracts are getting larger, particularly in cloud storage and AI sites, but emphasized that RPOs only include contracted work [95][96]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $6.57, a 13.3% increase from $5.80 in the prior year [22] - Revenues reached $4.3 billion, marking a 16.4% increase year-over-year, with organic growth contributing 8.1% [6][13] - Operating margin was 9.4%, with operating income of $405.7 million, reflecting strong performance across segments [18][22] Business Line Data and Key Metrics Changes - U.S. electrical construction revenues were $1.29 billion, up 52.1%, driven by strong organic growth and the acquisition of Miller Electric [15] - U.S. mechanical construction revenues reached a record $1.78 billion, increasing 7% primarily due to data center demand [16] - U.S. building services revenues were $813.9 million, reflecting a 2.1% increase year-over-year, with mechanical services growing 5.8% [17] Market Data and Key Metrics Changes - Remaining Performance Obligations (RPOs) reached a record $12.6 billion, a 29% increase year-over-year, driven by robust demand in data centers and healthcare [7][10] - RPOs in network and communications totaled $4.3 billion, nearly double from the previous year [10] - Healthcare RPOs grew to $1.3 billion, supported by the acquisition of Miller Electric [11] Company Strategy and Development Direction - The company is focusing on capital allocation with discipline, having allocated over $430 million for share repurchases and $900 million for acquisitions in the first nine months of 2025 [7] - The planned divestiture of the U.K. business for approximately $255 million aims to sharpen focus on core U.S. markets and support balanced capital allocation [25][26] - The acquisition of John W. Danforth Company is expected to add $350 million-$400 million in revenues, enhancing capabilities in data centers and healthcare [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong operating margins, despite macroeconomic uncertainties such as tariffs and potential government shutdowns [30] - The company anticipates continued demand in key sectors, particularly data centers, healthcare, and traditional manufacturing [30] - Management indicated that organic growth rates may stabilize in the high single digits to low double digits, reflecting the law of large numbers [74] Other Important Information - The company generated operating cash flow of $475.5 million during the quarter, with a strong balance sheet of $655 million in cash [24] - SG&A expenses increased by $58.4 million, primarily due to incremental expenses from acquired companies and increased headcount to support growth [22] Q&A Session Summary Question: Margin profile concerns - Management acknowledged strong operating margins and clarified that the current margins reflect ongoing investments and market conditions [35][36] Question: Growth in sectors outside data centers - Management highlighted strong growth in mechanical services, healthcare, and traditional manufacturing, indicating broad-based demand [39][40] Question: Impact of geographic investments on margins - Management confirmed that geographic investments had a notable impact on margins, estimating around $13 million in costs related to new market entries [57] Question: Capital allocation and buybacks - Management explained the lack of buybacks in the quarter was due to prior execution and emphasized a balanced approach to capital allocation [66][68] Question: Organic growth expectations - Management projected organic growth in the high single digits, with potential for slight increases due to strong RPO growth [74][76]

Financial Data and Key Metrics Changes - The company reported diluted EPS of $6.57 and revenues of $4.3 billion, representing a 16.4% increase from the prior year period [5][13]. - The operating margin was exceptional at 9.4%, with strong operating cash flow of $475.5 million [5][19]. - The book-to-bill ratio was 1.16, with record RPOs at $12.6 billion, an increase of $2.8 billion year over year [6][10]. Business Line Data and Key Metrics Changes - U.S. electrical construction revenues were $1.29 billion, increasing 52.1% due to strong organic growth and the acquisition of Miller Electric [15]. - U.S. mechanical construction revenues reached a record $1.78 billion, up 7% primarily through organic growth driven by data center demand [17]. - U.S. building services revenues were $813.9 million, reflecting a 2.1% increase year over year [18]. - Industrial services revenues were $286.9 million, consistent with the previous year, while UK building services generated revenues of $136.2 million, an increase of 28.1% [18][19]. Market Data and Key Metrics Changes - RPOs within network and communications totaled a record $4.3 billion, almost double the year-ago period [10]. - Healthcare RPOs totaled $1.3 billion, with nearly 7% year-over-year growth attributed to the acquisition of Miller Electric [11]. - Manufacturing and industrial RPOs reached $1.1 billion, benefiting from onshoring and reshoring initiatives [11]. Company Strategy and Development Direction - The company is focused on capital allocation with discipline, having allocated over $430 million on share repurchases and $900 million for acquisitions in the first nine months of 2025 [6]. - The sale of the UK business for approximately $255 million is expected to close by year-end, allowing the company to sharpen its focus on core U.S. markets [26][27]. - The acquisition of John W. Danforth Company is anticipated to add $350 million to $400 million in revenues, enhancing capabilities in data centers and healthcare [31]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across key sectors, particularly in data centers, healthcare, and traditional manufacturing [30]. - The company acknowledged macroeconomic uncertainties, including tariffs and trade issues, but believes its guidance reflects potential impacts [30]. - Management indicated that organic growth is expected to remain in the high single digits to low double digits, supported by robust RPO growth [100]. Other Important Information - The company generated a gross profit of $835.3 million, with a gross profit margin of 19.4% [22]. - SG&A expenses increased by $58.4 million, primarily due to incremental expenses from acquired companies and increased headcount to support growth [22]. - The company anticipates operating cash flow for the full year to be at least equal to net income [26]. Q&A Session Summary Question: Margin profile this quarter - Management noted that the operating margins are among the strongest ever, with expectations of 14% plus in electrical without amortization headwinds [42]. Question: Growth in data center RPOs - Management confirmed strong growth in mechanical services and noted that seven of ten mechanical segments had growth, indicating broad-based demand [51]. Question: Investments impacting electrical segment - Management indicated that the headwind from investments typically lasts one to two quarters as they build labor forces in new markets [60]. Question: Capital allocation and buybacks - Management clarified that the lack of buybacks in the quarter does not indicate capital constraints, as they are balanced capital allocators [90]. Question: Organic growth expectations - Management expects organic growth to remain in the high single digits, with potential for additional growth through acquisitions [100].

Financial Performance - Revenues for the third quarter of 2025 reached a record $4301529 thousand, a 16.4% increase compared to $3696924 thousand in the third quarter of 2024[16] - Operating income for the third quarter of 2025 was $405696 thousand, up 11.6% from $363538 thousand in the same period of 2024[16] - Diluted earnings per share (EPS) for the third quarter of 2025 increased by 13.3% to $6.57, compared to $5.80 in the third quarter of 2024[16] - For the nine months ended September 30, 2025, revenues increased by 15.5% to $12473301 thousand from $10796097 thousand in 2024[17] - Diluted earnings per share for the nine months ended September 30, 2025, increased by 21.8% to $18.53 from $15.21 in 2024[17] Remaining Performance Obligations (RPOs) - Record Remaining Performance Obligations (RPOs) reached $12.61 billion, a 29% increase year-over-year, and a 25% increase from December 2024[9] - Diverse RPOs of $12.61 billion; +$2.82 billion Y/Y[10] Strategic Initiatives - The planned divestiture of EMCOR UK is expected to tighten strategic focus on core end markets in the United States and slightly improve operating margins[9] - EMCOR UK currently delivers ~$500 million of annualized revenue and ~$0.45 of annualized EPS[20] - The divestiture of EMCOR UK is valued at $255 million and is expected to close by the end of 2025[20] Guidance - The company projects revenues between $16.7 billion and $16.8 billion[21] - The company projects Non-GAAP Diluted EPS between $25.00 and $25.75[21]

Core Insights - Emcor Group reported quarterly earnings of $6.57 per share, missing the Zacks Consensus Estimate of $6.65 per share, but showing an increase from $5.8 per share a year ago, resulting in an earnings surprise of -1.20% [1] - The company posted revenues of $4.3 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.37%, and an increase from $3.7 billion year-over-year [2] - Emcor Group shares have increased approximately 71.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $6.64 on revenues of $4.33 billion, and for the current fiscal year, it is $25.19 on revenues of $16.81 billion [7] Industry Context - The Building Products - Heavy Construction industry, to which Emcor Group belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Emcor Group's stock performance [5][6]

Financial Performance - Third quarter 2025 revenues reached a record $4.30 billion, representing a 16.4% increase year-over-year from $3.70 billion in Q3 2024[2] - Third quarter 2025 diluted EPS was $6.57, a 13.3% increase compared to $5.80 in Q3 2024[2] - Remaining performance obligations (RPOs) as of September 30, 2025, were a record $12.61 billion, nearly a 29% increase from $9.79 billion year-over-year[6] - Operating income for Q3 2025 was $405.7 million, or 9.4% of revenues, compared to $363.5 million, or 9.8% of revenues in Q3 2024[3] - For the first nine months of 2025, revenues totaled $12.47 billion, a 15.5% increase from $10.80 billion in the same period of 2024[8] - The company reported a 19.2% increase in operating income for the first nine months of 2025, totaling $1.14 billion[9] - Total consolidated revenues for the nine months ended September 30, 2025, increased to $12,473.3 million, a 15.5% growth compared to $10,796.1 million in 2024[29] - Net income for the nine months ended September 30, 2025, was $838.2 million, up from $715.0 million in 2024, reflecting a growth of 17.2%[26] - Operating income for the nine months ended September 30, 2025, reached $1,139.7 million, compared to $956.3 million in 2024, representing an increase of 19.1%[31] Guidance and Projections - The company narrowed its 2025 revenue guidance to a range of $16.7 billion to $16.8 billion, up from the previous range of $16.4 billion to $16.9 billion[1] - Non-GAAP diluted EPS guidance for 2025 was narrowed to $25.00 - $25.75 from $24.50 - $25.75[1] Expenses and Cash Flow - Selling, general and administrative expenses for Q3 2025 were $429.6 million, maintaining 10.0% of revenues, consistent with Q3 2024[4] - Cash and cash equivalents at the end of the period were $656.3 million, down from $1,036.8 million at the end of September 2024, indicating a decrease of 36.7%[26] - The company reported a decrease in cash flows from operating activities to $777.7 million for the nine months ended September 30, 2025, down from $938.4 million in 2024, a decline of 17.1%[26] Assets and Liabilities - Total assets increased to $8,640.3 million as of September 30, 2025, compared to $7,716.5 million at the end of 2024, marking a growth of 12.0%[24] - Total liabilities rose to $5,303.8 million, up from $4,777.8 million in 2024, reflecting an increase of 10.9%[24] Segment Performance - The United States mechanical construction and facilities services segment generated revenues of $5,107.1 million for the nine months ended September 30, 2025, a 7.6% increase from $4,745.1 million in 2024[29] - The company experienced significant growth in sectors such as Network and Communications, Water and Wastewater, and Manufacturing and Industrial, despite a reduction in RPOs within the High-Tech Manufacturing sector[6] Stock and Shareholder Returns - The company repurchased common stock worth $432.2 million during the nine months ended September 30, 2025, compared to $405.4 million in 2024[26] Earnings and Margins - GAAP operating income for the nine months ended September 30, 2025, was $1,139,664, compared to $956,299 in 2024, representing a year-over-year increase of approximately 19.1%[35] - Non-GAAP operating income, excluding transaction expenses related to the acquisition of Miller Electric, was $1,149,017 for 2025, up from $956,299 in 2024, reflecting a growth of about 20.2%[35] - GAAP operating margin improved to 9.1% in 2025 from 8.9% in 2024, while the non-GAAP operating margin, excluding transaction expenses, increased to 9.2% from 8.9%[35] - GAAP net income for the nine months ended September 30, 2025, was $838,210, an increase from $714,984 in 2024, marking a growth of approximately 17.3%[35] - Non-GAAP net income, excluding transaction expenses related to the acquisition of Miller Electric, was $845,153 in 2025, compared to $714,984 in 2024, indicating a rise of about 18.2%[35] - GAAP diluted earnings per common share increased to $18.53 in 2025 from $15.21 in 2024, representing a growth of approximately 21.5%[35] - Non-GAAP diluted earnings per common share, excluding transaction expenses, rose to $18.68 in 2025, up from $15.21 in 2024, reflecting an increase of about 22.4%[35] Acquisition and Integration - Transaction expenses related to the acquisition of Miller Electric amounted to $9,353 for the nine months ended September 30, 2025[35] - The tax effect of transaction expenses related to the acquisition of Miller Electric was $(2,410) for the nine months ended September 30, 2025[35] - The company is focused on integrating Miller Electric and expects to leverage synergies to enhance future performance[35]

Financial Performance - Revenues for Q3 2025 reached $4,301,529, a 16.4% increase from $3,696,924 in Q3 2024[16] - Gross profit for Q3 2025 was $835,313, up 13.7% from $734,726 in Q3 2024[16] - Net income for the nine months ended September 30, 2025, was $838,210, representing a 17.3% increase compared to $714,984 for the same period in 2024[21] - Basic earnings per share for Q3 2025 were $6.59, compared to $5.83 in Q3 2024, reflecting a 13.1% increase[16] - Operating income for the nine months ended September 30, 2025, was $1,139,664, a 19.1% increase from $956,299 in 2024[16] - Total comprehensive income for the nine months ended September 30, 2025, was $852,193, compared to $724,409 in 2024, indicating a 17.6% increase[17] - For the nine months ended September 30, 2025, net income increased to $838,210,000, up from $714,984,000 for the same period in 2024, representing a growth of approximately 17.3%[25] - For the three months ended September 30, 2025, net income was $295.4 million, compared to $270.3 million for the same period in 2024, representing an increase of 9.3%[85] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $777,659, down from $938,402 in 2024[21] - The company reported a net cash used in investing activities of $977,719 for the nine months ended September 30, 2025, compared to $243,687 in 2024[21] - The company repurchased common stock totaling $423,308,000 during the nine months ended September 30, 2025, compared to $409,239,000 in the same period of 2024, indicating a slight increase in buyback activity[25] - The company repurchased approximately 1.1 million shares of common stock for about $423.3 million during the nine months ended September 30, 2025[108] - Since the inception of the share repurchase program, the company has repurchased approximately 28.2 million shares for approximately $2.81 billion[108] Segment Performance - For the three months ended September 30, 2025, total segment revenues reached $4,301,529 thousand, an increase from $3,696,924 thousand in 2024, representing a growth of approximately 16.4%[56] - The United States electrical construction and facilities services segment generated $1,286,250 thousand in revenue for the three months ended September 30, 2025, compared to $845,030 thousand in 2024, marking a significant increase of 52%[53] - The United States mechanical construction and facilities services segment reported revenues of $1,779,279 thousand for the three months ended September 30, 2025, up from $1,662,211 thousand in 2024, reflecting a growth of about 7%[55] - The United States building services segment's revenue for the three months ended September 30, 2025, was $813,879 thousand, compared to $796,923 thousand in 2024, indicating a slight increase of 2.1%[56] - The United States industrial services segment achieved revenues of $286,914 thousand for the three months ended September 30, 2025, which is comparable to $286,410 thousand in 2024, showing a marginal increase[56] - For the nine months ended September 30, 2025, total segment revenues were $3,713,360 thousand, a substantial increase from $2,409,735 thousand in 2024, representing a growth of approximately 54%[58] - The network and communications market sector within the United States electrical construction and facilities services segment saw revenues of $1,807,953 thousand for the nine months ended September 30, 2025, up from $1,002,116 thousand in 2024, a growth of 80.5%[58] Assets and Liabilities - Total stockholders' equity as of September 30, 2025, was $3,336,513,000, an increase from $2,759,119,000 as of September 30, 2024, reflecting a growth of about 20.9%[25] - The balance of retained earnings as of September 30, 2025, was $5,582,370,000, up from $4,497,430,000 as of September 30, 2024, reflecting an increase of approximately 24.1%[25] - The company reported inventories of $105.4 million as of September 30, 2025, an increase from $95.7 million at the end of 2024, indicating a growth of 10.8%[87] - As of September 30, 2025, total liabilities held for sale amounted to $136.8 million, while assets held for sale were valued at $161.2 million[84] - The estimated non-current portion of undiscounted insurance liabilities was $269.4 million as of September 30, 2025, up from $237.3 million as of December 31, 2024[121] Acquisitions - The acquisition of Miller Electric Company for approximately $868.6 million contributed $794.4 million in revenues and $21.2 million in operating income from February 3, 2025, to September 30, 2025[76] - During the first nine months of 2025, the company acquired five companies for a total upfront consideration of $50.9 million, enhancing capabilities in mechanical construction and facilities services[80] - In 2024, the company acquired seven companies for a total upfront consideration of $231.1 million, which included $139.1 million allocated to identifiable intangible assets[82] Tax and Compliance - The company is currently implementing processes to comply with new accounting standards related to income tax disclosures, effective for fiscal years beginning after December 15, 2024[29] - The income tax provision for the nine months ended September 30, 2025, was $305.6 million, with an effective tax rate of 26.7%[102] - The company had no unrecognized income tax benefits as of September 30, 2025, and December 31, 2024[104] Market and Risk Management - The company is exposed to fluctuations in commodity prices, particularly copper and steel, which could impact profitability on fixed-price contracts[199] - The company monitors the creditworthiness of its customers to manage risks associated with accounts receivable and contract assets[197] - The Federal Reserve's interest rate cuts may impact the company's variable-rate borrowings, although the pace of future decreases remains uncertain[196]