EME · Q2 2026 Earnings

Bullish

Emcor

Reported July 30, 2026

30-second summary

30-second take: EMCOR delivered Q2 revenue of $5.15B (+19.8% YoY) and GAAP diluted EPS of $9.06 (+34.8% YoY), with operating margin stepping to 10.6% — well above the FY26 band's ceiling and directly answering last quarter's Q1 8.7% margin question. RPOs extended to a record $17.14B (+43.9% YoY), and management raised FY26 guidance decisively: revenue to $20.00–20.50B (midpoint +$1.375B, or +7.3%) and EPS to $32.00–33.25 (midpoint +$3.63, or +12.5%), with the operating margin band lifted 50/40bps to 9.5–9.8%. This is the cleanest raise of the FY26 cycle — margin is no longer the friction it was in Q1.

Headline numbers

EPS

Q2 FY2026

$9.06

+25.3% vs est.

Revenue

Q2 FY2026

$5.15B

+19.8% YoY

+9.3% vs est.

Gross margin

Q2 FY2026

19.8%

Operating margin

Q2 FY2026

10.6%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$5.15B	$4.30B	+19.8%	$4.63B	+11.2%
EPS	$9.06	$6.72	+34.8%	$6.84	+32.5%
Gross margin	19.8%	19.4%	+40bps	18.7%	+110bps
Operating margin	10.6%	9.6%	+100bps	8.7%	+190bps

Guidance

EMCOR raised full-year FY2026 guidance substantially on strong Q2 execution: revenue raised to $20.0–$20.5B (+$1.5B) and EPS to $32.00–$33.25 (+$3.75 at low end), with operating margin guidance improved to 9.5%–9.8%.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	—	$5.15B	+9.3% above consensus estimate ($4.71B)	Beat
Diluted EPS	Q2 FY2026	—	$9.06	+25.3% above consensus estimate ($7.23)	Beat
Operating Margin	Q2 FY2026	—	10.6%	+1.2 - +1.6 percentage points above FY2026 guidance midpoint (9.65%)	Beat

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$18.50B - $19.25B	$20.00B - $20.50B	+$1.50B - $1.25B at low/high end	Raised
Diluted EPS	FY2026	$28.25 - $29.75	$32.00 - $33.25	+$3.75 - $3.50 at low/high end	Raised
Operating Margin	FY2026	9.0% - 9.4%	9.5% - 9.8%	+0.5 - +0.4 percentage points	Raised

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
United States electrical construction and facilities services	$1.663B	—	+24.1%
United States mechanical construction and facilities services	$2.301B	—	+31.0%
United States building services	$0.838B	—	+5.6%
United States industrial services	$0.354B	—	+25.9%
US Electrical Construction Operating Margin	13.9%	—	—
US Mechanical Construction Operating Margin	12.5%	—	—
US Building Services Operating Margin	7.6%	—	—
US Industrial Services Operating Margin	2.7%	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Remaining Performance Obligations (RPOs)	$17.14 billion	$11.91 billion	—
RPO Year-over-Year Growth	43.9%	32.4%	—
Operating Margin	10.6%	9.6%	—
SG&A as % of Revenue	9.2%	—	—

Management tone

No transcript available for Q2; tone analysis is limited to press-release commentary.

Three quarters ago, management framed FY26 with a deliberate 40bps low-end margin reset below the FY25 actual — a cautious-but-credible posture. Last quarter, they held that band despite an 8.7% Q1 print, betting on back-half normalization. This quarter, the band was raised 50/40bps and Q2 came in 80bps above even the new ceiling. The language in the release — "sustained demand across several key market sectors" and "diverse pipeline with significant visibility" — is materially firmer than the Q1 framing of "well-positioned for the remainder of 2026." The shift from "positioned" to "sustained demand" is subtle but meaningful: it moves the anchor from expected execution to already-contracted work.

The qualitative framing also shifted from "market momentum" (Q1) to "ongoing market opportunities" — a change that implies management now expects the tailwinds to persist across multiple quarters rather than reflect a single-cycle burst. Absent the transcript, it's not possible to test how management framed the margin surprise, the data center concentration, or the sustainability of Industrial Services' acceleration, but the numbers themselves are doing the talking.

Answers to last quarter's watch list

Q2 operating margin landing point — above 9.0% or stuck at 8.7–8.9% — Q2 printed 10.6%, decisively above the prior FY band ceiling of 9.4% and above the new raised band ceiling of 9.8%. The Q1 8.7% print was the anomaly, not the new run-rate; management's decision to hold the band in Q1 has been vindicated. Status: Resolved positively

Mechanical segment operating margin — stabilization at 10.9% or further compression — Mechanical margin recovered sequentially to 12.5%, essentially reversing the Q1 mix-driven compression. The prime-contractor and construction-manager mix drag either normalized or was absorbed as project execution matured. Status: Resolved positively

Organic growth trajectory ex pass-through — Organic revenue growth in Q2 was 19.6% (vs. 19.8% total), and 18.3% for the first half (vs. 19.7% total) after adjusting for acquisition contribution and the UK sale. Underlying demand depth remains robust and closely tracks the reported top line. Status: Resolved positively

RPO vertical breakdown — network/communications lapping and high-tech manufacturing reload — Total RPOs at $17.14B (+43.9% YoY), with the most significant growth in Network and Communications, Water and Wastewater, Institutional, and Healthcare per the release. High-tech manufacturing reload visibility wasn't specifically called out. Status: Partially resolved

Capital deployment update — UK proceeds, buyback pace, M&A signaling — Buybacks of $268.5M and dividends of $35.6M in 1H26; $95.0M spent on acquisitions. Cash position of $924.4M with zero revolver borrowings. UK Building Services line no longer appears in segments, consistent with sale having closed. Status: Partially resolved

Late-July visibility update — back-half ramp materializing or guide revisited — The guide was revisited, and materially so: revenue midpoint +$1.375B, EPS midpoint +$3.63, margin band +45bps at midpoint. This is the ramp management flagged, arriving on schedule and larger than telegraphed. Status: Resolved positively

What to watch into next quarter

Whether Q3 operating margin holds above 9.8% (validating the raised band) or reverts toward the 9.5% low end — the FY26 midpoint of 9.65% implies 2H margin ~9.6% given the 9.7% 1H run-rate, meaning management is implicitly guiding to roughly flat margin in 2H

Mechanical segment margin sustainability at 12.5% — whether Q1's compressed level or Q2's 12.5% is the underlying rate as prime-contractor mix continues to grow

RPO sequential growth — whether the book continues to extend or starts to plateau at the $17B+ level

Industrial Services trajectory — whether the +25.9% Q2 growth was a lumpy turnaround catch-up or a new sustained run-rate; the segment's 2.7% margin remains a drag if growth doesn't come with margin expansion

Initial directional commentary on FY27 shape — with FY26 revenue now guided to $20.25B midpoint, the base for FY27 becomes materially harder to grow off of

Capital deployment disclosure — buyback pace against the $924M cash position, and any M&A signaling given the still-elevated multiple environment

Sources

EMCOR Q2 FY2026 Earnings Press Release (SEC 8-K Exhibit 99.1) — https://www.sec.gov/Archives/edgar/data/105634/000010563426000112/eme-ex991_2026630xq2.htm

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