EMCOR Lifts 2026 Outlook and Adds $500 Million Buyback After Record Quarter

EMCOR Group raised its 2026 revenue and earnings forecasts on Thursday and added $500 million to its share buyback, after data center and other mission-critical work pushed third-quarter revenue up nearly 29% to a record.

The electrical and mechanical contractor now expects full-year revenue of $20.6 billion to $21.0 billion, up from $20.0 billion to $20.5 billion, and non-GAAP diluted EPS of $34.50 to $35.50, up from $32.00 to $33.25, according to the earnings release it filed with an 8-K on Thursday. It also lifted its expected non-GAAP operating margin to about 10% from 9.5% to 9.8%.

A record quarter

Third-quarter revenue rose 28.8% to $5.54 billion from $4.30 billion a year earlier. On an organic basis, adjusting for acquisitions and the 2025 sale of its U.K. operations, revenue grew 25.5%.

Net income climbed to $399.9 million, or $9.04 a diluted share, from $295.4 million, or $6.57, a 37.6% rise per share. The latest quarter included a $34.0 million non-cash impairment on intangible assets; excluding it, non-GAAP EPS was $9.60, up 46.1%.

Operating margin widened to 9.8% from 9.4%, and the non-GAAP operating margin reached 10.5%. Selling, general and administrative costs fell to 9.5% of revenue from 10.0%.

"EMCOR delivered another quarter of exceptional growth, margin performance, operating cash flow, and capital allocation," Chairman, President and CEO Tony Guzzi said in the release.

Backlog jumps 47%

Remaining performance obligations, EMCOR's measure of contracted work not yet completed, hit a record $18.57 billion at Sept. 30, up $5.96 billion, or 47.2%, from $12.61 billion a year earlier.

The biggest growth came in the Network and Communications sector, where the company said mission-critical facilities "continue to require substantial electrical infrastructure and increasingly sophisticated cooling systems." EMCOR also cited demand from healthcare, water and wastewater, institutional, and manufacturing and industrial customers.

Guzzi said the company "continued to outgrow the broader non-residential construction market."

Nine-month picture

For the first nine months of 2026, revenue rose 22.9% to $15.32 billion, and net income reached $1.11 billion, or $24.93 a diluted share, compared with $838.2 million, or $18.53, a year earlier. Non-GAAP EPS for the period was $25.48.

Net cash provided by operating activities over the nine months rose to $1.087 billion from $777.7 million a year earlier, according to the cash flow statement in the release. EMCOR spent $797.4 million on acquisitions of businesses, net of cash acquired, during the period, down from $900.5 million a year earlier.

Buyback expanded

The board authorized an additional $500 million for repurchases under EMCOR's existing program, which has no expiration date. The company said the purchases will be funded from operations.

"The increase in our share repurchase authorization reflects our strong financial position, confidence in the long-term prospects of our business, and commitment to balanced and disciplined capital allocation," Guzzi said.

EMCOR scheduled its conference call for 10:30 a.m. ET on Thursday.

Sources

1. EMCOR Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000105634-26-000132)

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