Key Takeaways Record $12.6B RPOs, with 80% of 2025 data-center growth organically driven, support sustained growth.Healthcare, manufacturing, industrial and water end markets strengthen visibility and reduce cyclicality.Strong productivity tools (VDC/BIM) and recurring service revenues differentiate EME from EPC market peers.EMCOR Group, Inc. (EME) offers services across mechanical and electrical construction, and industrial and energy infrastructure, alongside building services. Its business model highligh ...

Core Insights - EMCOR Group, Inc. reported third-quarter 2025 results with earnings and revenues missing expectations, leading to a 10% decline in stock price [1][7] - Despite the miss, year-over-year growth was solid, with adjusted EPS increasing to $6.57 from $5.80 and revenues rising 16% to $4.3 billion, driven by strong performance in Electrical and Mechanical Construction [2][4] Financial Performance - Adjusted EPS increased to $6.57 from $5.80 year-over-year [2] - Revenues rose 16% to $4.3 billion, supported by strong execution in Electrical and Mechanical Construction [2] - Electrical Construction revenues surged 52.1%, with Network & Communications revenues increasing nearly 70% [4] - Mechanical Construction revenues reached $1.78 billion, up 7%, driven by data center activity and demand in manufacturing [4] Market Dynamics - Construction activity remains robust across data centers, healthcare, manufacturing, and transportation, supporting momentum in Electrical and Mechanical Construction [3] - Record RPOs (Remaining Performance Obligations) of $12.61 billion reflect broad growth across key sectors, increasing from $9.79 billion year-over-year [9] - Network & Communications contributed significantly to RPO growth, nearly doubling year-over-year [9] Strategic Outlook - EMCOR anticipates continued strength in healthcare, traditional manufacturing, water/wastewater, and commercial retrofit work [5] - The company plans to deepen its presence in these sectors through targeted resource allocation and selective M&A [5] - Full-year revenue outlook has been raised, supported by strong secular drivers across data centers, healthcare, manufacturing, and infrastructure [10] Productivity and Efficiency - EMCOR's focus on productivity through VDC, BIM, and prefabrication enhances execution consistency and labor efficiency [11] - The company continues to invest in prefabrication capacity and workforce expansion, leading to improved productivity levels [12] - Anticipated improvements in productivity as prefabrication capabilities expand and new markets mature [13] Valuation and Earnings Estimates - EMCOR is trading at a forward P/E ratio of 21.46X, which is a premium relative to the industry but a discount compared to peers like Quanta Services and Comfort Systems [14][16] - Earnings estimates for 2025 and 2026 have trended upward to $25.24 and $27.41 per share, implying year-over-year growth of 17.3% and 8.6%, respectively [17] Investment Consideration - The recent stock pullback presents a potential buying opportunity, supported by improving fundamentals, record RPO visibility, and positive earnings estimate revisions [19][20] - EMCOR demonstrates a strong operational and financial foundation, making it an attractive option for investors seeking exposure to high-quality operators in a favorable market [20]

Corporate Overview Baird 2025 Global Industrial Conference November 13, 2025 Chicago, Illinois EMCOR GROUP, INC. November 13, 2025 1 July 31, 2025 V2 – 7/27/25 6:25 pm EMCOR GROUP, INC. November 13, 2025 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL DISCLOSURES Forward-Looking Statements Information conveyed with this presentation also include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP measu ...

Core Insights - EMCOR Group, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][3][6] - The company's performance benefited from virtual design and construction technologies, prefabrication capabilities, and the acquisition of Miller Electric [1][2] Financial Performance - Adjusted earnings per share (EPS) reached $5.41, surpassing the Zacks Consensus Estimate of $4.57 by 18.4%, compared to $4.17 in the same quarter last year [3] - Revenues totaled $3.87 billion, exceeding the consensus estimate of $3.8 billion by 1.9% and increasing 12.7% from $3.43 billion year-over-year [6] Segment Performance - U.S. Construction Services segment revenues grew 21.3% year-over-year to $2.66 billion, with operating income increasing by 33.2% and margin expanding to 12.1% [7] - U.S. Electrical Construction and Facilities Services revenues rose 42.3% year-over-year to $1.09 billion, with operating income up 48.6% and margin at 12.5% [8] - U.S. Mechanical Construction and Facilities Services revenues increased 10.2% year-over-year to $1.57 billion, with operating income rising 23.9% and margin at 11.9% [9] - U.S. Building Services revenues decreased 4.9% year-over-year to $742.6 million, while operating income grew 8.9% [9] - U.S. Industrial Services revenues inched up 1.4% year-over-year to $359 million, but operating income dropped 62.4% [10] - U.K. Building Services revenues increased 0.6% year-over-year to $105.3 million, with operating income falling 7.3% [10] Operating Metrics - Gross margin expanded 150 basis points year-over-year to 18.7%, while operating margin improved to 8.2% from 7.6% [11] - Selling, general and administrative expenses as a percentage of revenues increased by 80 basis points to 10.4% [11] Liquidity and Cash Flow - As of March 31, 2025, cash and cash equivalents stood at $576.7 million, down from $1.34 billion at the end of 2024 [12] - Net cash provided by operating activities was $108.5 million, compared to $132.3 million in the prior year [12] - Remaining performance obligations (RPOs) increased year-over-year to $11.75 billion from $9.18 billion [12] Outlook - EMCOR expects annual revenues to be between $16.1 billion and $16.9 billion, with EPS projected in the range of $22.65 to $24.00 [13]