EMCOR(US:EME)2025-10-30 12:48Financial 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]