EMCOR Group, Inc.

EMCOR reported second-quarter 2026 revenue of $5.15 billion, up 19.8% from the prior year, or 19.6% organic excluding acquisitions and EMCOR U.K. Operating income was $547.3 million, up nearly 32%, with operating margin at 10.6%. Diluted EPS was $9.06, up 35% from $6.72 a year ago. Gross profit was $1.02 billion, up 22.6%, and gross margin improved 40 basis points to 19.8%. For the first half, revenue was up 19.7% and operating margin reached 9.7%. RPOs ended at a record $17.14 billion, up 44% year over year and 29% from December, with 95% organic growth. Management raised full-year 2026 guidance to revenue of between $20 million and $20.5 billion and diluted EPS of between $32 and $33.25.

Tony Guzzi said EMCOR had another outstanding quarter, emphasizing exceptional organic growth, strong conversion into operating income and cash flow, continued booking strength, and record RPOs. He framed the business as benefiting from disciplined execution, customer trust, and a balanced capital allocation strategy that combines shareholder returns with strategic acquisitions. His tone was confident and upbeat, but still grounded in the company’s usual focus on pricing discipline, risk management, and execution.

Jason Nalbandian walked through the quarter’s record financial performance, including revenue of $5.15 billion, operating income of $547.3 million, gross profit of $1.02 billion, and EPS of $9.06. He noted gross margin expansion to 19.8%, SG&A margin improvement to 9.2% from 9.7% a year ago, and operating cash flow of $289.4 million in the quarter. He also highlighted $924 million of cash on hand and $1.45 billion of working capital, and said the five announced acquisitions generated $625 million of revenue and $105 million of EBITDA over the trailing 12 months, with $250 million to $275 million of revenue contribution expected in the back half of 2026.

Analysts focused heavily on data centers, semiconductor/high-tech manufacturing, mechanical margin mix, RPO conversion, and the acquisition strategy. Management said demand in data centers remains unchanged, with strong activity in fire/life safety, mechanical, and electrical work, and noted RPOs in that area are up about 7% sequentially and versus year-end. On mechanical margins, Jason attributed the pressure to mix, including more GMP, CM/prime contractor, water/wastewater, and food-processing work rather than any shift in philosophy. They also said the RPO-to-revenue relationship remains broadly consistent, though project size and longer ramp times are pushing burn patterns longer than in the past.