EMCOR(US:EME)2025-10-30 11:33Financial 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]