Specialty construction contractor company EMCOR (NYSE: EME) announced better-than-expected revenue in Q4 CY2025, with sales up 19.7% year on year to $4.51 billion. The company’s full-year revenue guidance of $18.13 billion at the midpoint came in 1.7% above analysts’ estimates. Its GAAP profit of $9.68 per share was 45% above analysts’ consensus estimates.
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EMCOR (EME) Q4 CY2025 Highlights:
- Revenue: $4.51 billion vs analyst estimates of $4.29 billion (19.7% year-on-year growth, 5.3% beat)
- EPS (GAAP): $9.68 vs analyst estimates of $6.68 (45% beat, included gain on sale of $144.9 million for EMCOR’s United Kingdom operations)
- Adjusted EBITDA: $591.7 million vs analyst estimates of $456.8 million (13.1% margin, 29.5% beat)
- EPS (GAAP) guidance for the upcoming financial year 2026 is $28.25 at the midpoint, beating analyst estimates by 1.1%
- Operating Margin: 12.7%, up from 10.3% in the same quarter last year
- Free Cash Flow Margin: 10.9%, down from 12% in the same quarter last year
- Market Capitalization: $35.89 billion
Tony Guzzi, Chairman, President, and Chief Executive Officer of EMCOR, commented, “We had an excellent close to the year with our fourth quarter results, including strong revenue growth and exceptional operating performance. Our success was driven by solid execution as we continued to perform well on some of the most technically sophisticated, fast-paced, and demanding projects in our history. Our Remaining Performance Obligations are again at an all-time high as we continue to win and earn new business across multiple sectors, geographies, and trades. Our pipeline remains strong, reflecting the broad-based demand for our services and supporting our positive outlook for 2026. "
Company Overview
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, EMCOR’s sales grew at an exceptional 14.1% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. EMCOR’s annualized revenue growth of 16.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
We can dig further into the company’s revenue dynamics by analyzing its most important segments, Mechanical Construction and Facilities Services
and Building Services
, which are 43.1% and 17.1% of revenue. Over the last two years, EMCOR’s Mechanical Construction and Facilities Services
revenue (design, integration, installation) averaged 10.6% year-on-year growth while its Building Services
revenue (maintenance, electrical, plumbing) was flat. 
This quarter, EMCOR reported year-on-year revenue growth of 19.7%, and its $4.51 billion of revenue exceeded Wall Street’s estimates by 5.3%.
Looking ahead, sell-side analysts expect revenue to grow 4.9% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.
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Operating Margin
EMCOR was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.7% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.
On the plus side, EMCOR’s operating margin rose by 4.7 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, EMCOR generated an operating margin profit margin of 12.7%, up 2.4 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
EMCOR’s EPS grew at an astounding 64% compounded annual growth rate over the last five years, higher than its 14.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into EMCOR’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, EMCOR’s operating margin expanded by 4.7 percentage points over the last five years. On top of that, its share count shrank by 18.6%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For EMCOR, its two-year annual EPS growth of 45.5% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.
In Q4, EMCOR reported EPS of $9.68, up from $6.32 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects EMCOR’s full-year EPS of $28.22 to stay about the same.
Key Takeaways from EMCOR’s Q4 Results
It was good to see EMCOR beat analysts’ EBITDA and EPS expectations this quarter, even after removing the non-recurring gain on sale from its UK operations transaction. Looking ahead, EPS guidance for the coming year also came in head. Zooming out, we think this quarter featured some important positives. The stock traded up 2% to $818.06 immediately following the results.
Sure, EMCOR had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
