EMCOR grew Q2 2026 revenue 19.8% to a record $5.15 billion and diluted EPS 34.8% to $9.06 on data center demand, lifted backlog 43.9% to $17.14 billion, and raised full-year guidance.
Revenue
$5.2B
+19.8% YoY
Net income
$404M
+33.6% YoY
Diluted EPS
$9.06
+34.8% YoY
Operating margin
10.6%
Overview
EMCOR, one of the largest US electrical and mechanical contractors, had a record second quarter. Revenue rose 19.8% to $5.15 billion and diluted earnings per share rose 34.8% to $9.06. The main driver was data center construction: revenue from what EMCOR calls the "network and communications" market sector rose about two-thirds across its two construction segments. Profit grew faster than revenue for two reasons. Gross margin widened (gross margin is the share of revenue left after the direct costs of doing the work), and overhead grew more slowly than sales.
The headline growth rate actually understates the US business. EMCOR sold its UK operations on December 1, 2025, so last year's quarter includes $134.6 million of UK revenue that is gone this year. Counting only US operations, revenue grew 23.6% ($5.15 billion vs. $4.17 billion). In its earnings release (8-K Exhibit 99.1), the company says organic growth was 19.6%. "Organic" means growth that excludes both the UK sale and newly acquired companies. Acquisitions contributed $169.2 million of revenue, so nearly all of the growth came from businesses EMCOR already owned.
Backlog set a record too. Remaining performance obligations (RPOs), which is contracted work not yet performed and billed, reached $17.14 billion. That is up 43.9% from a year earlier and up $3.89 billion since December. Management raised its full-year guidance substantially, and it has also agreed to about $700 million of electrical-contractor acquisitions.
Key Metrics
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$5,154.9M
$4,304.4M
+19.8%
Gross margin
19.8%
19.4%
+0.4 pts
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Operating margin is the share of revenue left after running the business, before interest and tax. The network & communications row adds together the two construction segments' figures from the revenue breakdown in Note 3 of the 10-Q.
First half (six months to June 30): revenue was $9.78 billion (+19.7%; organic +18.3% per the earnings release), operating income was $951.2 million (9.7% margin vs. 9.0%), net income was $709.2 million (+30.6%) and diluted EPS was $15.89 (+32.9%). The first half of 2025 included $9.4 million of Miller Electric deal costs. Without them, 2025's first-half EPS would have been $12.11 on the company's non-GAAP basis, which still leaves 2026 up 31.2%.
Segment Performance
Segment
Q2 2026 revenue
YoY
Q2 2026 op. margin
Q2 2025 op. margin
US Electrical Construction
$1,662.5M
+24.0%
13.9%
11.8%
US Mechanical Construction
$2,300.9M
+31.1%
12.5%
13.6%
US Building Services
$837.7M
+5.6%
7.6%
6.3%
US Industrial Services
$353.8M
+25.9%
2.7%
(0.1)%
UK Building Services (sold Dec 2025)
—
—
—
6.3%
Corporate costs rose to $43.7 million from $39.2 million.
Electrical construction was the standout on profit. Operating income rose 46.8% to $231.4 million, and margin gained 2.1 points. The 10-Q attributes this to "excellent project execution, and a more favorable mix of work", with network and communications producing the biggest gain in gross profit. Data center work made up 58% of this segment's revenue ($973.0 million), up from 50% a year earlier. Healthcare revenue fell 13% and transportation revenue fell 37%. In both sectors, large projects were finished or nearly finished, and in transportation EMCOR also chose to take on less roadway lighting and traffic-signal work. Acquisitions added only $20.5 million of this segment's revenue in the quarter. That is because Miller Electric, bought in February 2025 for $876.8 million, now appears in both years' figures and no longer counts as "incremental."
Mechanical construction grew fastest in revenue, up $545.6 million, but its margin fell 1.1 points to 12.5%. This is the main case where the headline number and the underlying driver point in different directions. Management blames project mix, not execution: more of its work is as construction manager or prime contractor, a role that carries "lower than average gross profit margins". It also has more guaranteed-maximum-price and cost-plus contracts, "particularly in newer geographies or on projects where design or scope is still evolving". Network and communications revenue in this segment roughly doubled, from $389.7 million to $799.3 million, and rose from 22% to 35% of the segment's revenue. High-tech manufacturing revenue fell 19% as semiconductor projects were completed.
Building services grew only modestly, but its margin rose to 7.6% from 6.3%. The drivers were a better project mix, improved execution and lower overhead after restructuring completed in 2025. Industrial services returned to profit ($9.6 million vs. a $0.4 million loss) on more refinery turnaround work (scheduled maintenance shutdowns at refineries and plants), petrochemical projects and a large solar project.
End-Market Mix
Adding up the two construction segments shows how concentrated the growth is:
Network & communications rose from about 25% of total company revenue to about 34%. This makes EMCOR's results increasingly tied to data center construction spending. Institutional work is the other clear growth area. It came from public-sector and education projects, and in the mechanical segment it was partly helped by acquisitions.
Backlog
RPOs by segment
Jun 30, 2026
Dec 31, 2025
Jun 30, 2025
US Electrical Construction
$6.27B
$4.96B
$4.20B
US Mechanical Construction
$9.37B
$6.93B
$5.98B
US Building Services
$1.36B
$1.19B
$1.31B
US Industrial Services
$0.15B
$0.17B
$0.22B
UK Building Services
—
—
$0.21B
Total
$17.14B
$13.25B
$11.91B
The 43.9% year-over-year increase is slightly understated, because last June's total included $206 million of UK backlog that has since been sold. Counting only US operations, RPOs grew 46.4%. The 10-Q says the increase since December came mainly from data center contracts, healthcare awards in the Northeast, water and wastewater projects in the Southeast, and college and university work. Backlog fell in manufacturing & industrial and in hospitality. EMCOR expects to turn $13.02 billion of the backlog into revenue within one year, well above the $9.78 billion it booked in the first half.
Cash, Buybacks and Acquisitions
Cash conversion lagged earnings. First-half operating cash flow was $289.9 million, below the $302.2 million of a year earlier, even though net income was $709.2 million. The 10-Q attributes this to working capital: fast growth means EMCOR pays for labor and materials before it can bill customers. Cash fell to $924.4 million from $1.11 billion at year-end. There were no borrowings on the $1.30 billion revolving credit line.
Buybacks: $177.7 million in Q2 (0.2 million shares) and $265.3 million in the first half, which was $163.6 million less than a year earlier. $415.2 million of the repurchase authorization remains. The diluted share count fell about 1% from a year earlier, which added a little to EPS growth. The quarterly dividend is $0.40 per share.
Acquisitions: four companies bought in the first half for $99.8 million. After the quarter ended, EMCOR bought two electrical contractors (Midwest and Southeast) and agreed to buy two more (Texas and the Midwest). The four deals total about $700 million upfront, all going into the electrical segment. They will be paid for with cash on hand and, if needed, the revolving credit line. That total is about three-quarters of the June 30 cash balance.
Takeaway: EMCOR's quarter was driven by data centers. Network & communications revenue rose 67% and is now about a third of the company, and backlog grew 44% to a record $17.14 billion. The main caution is in the mechanical segment. It is winning more work in lower-margin roles and under contract types where scope is still evolving, and its margin fell 1.1 points even as revenue grew 31%.
Outlook
Management raised its 2026 guidance, according to the July 30 earnings release (8-K Exhibit 99.1):
2026 guidance
Current (Jul 30)
Previous (Apr 29)
Revenue
$20.00B – $20.50B
$18.50B – $19.25B
Operating margin
9.5% – 9.8%
9.0% – 9.4%
Diluted EPS
$32.00 – $33.25
$28.25 – $29.75
After first-half EPS of $15.89, the guidance implies $16.11–$17.36 for the second half, roughly flat to modestly above the first half. That looks achievable given $13.0 billion of backlog due within twelve months. It also leaves room for the mechanical-segment mix pressure and for the costs of integrating the new acquisitions. The risks to watch are threefold: how concentrated revenue is in data centers, whether the newer guaranteed-maximum-price and cost-plus contracts hold their margins, and whether working capital keeps absorbing cash as growth continues. The Q3 10-Q should also show the first results from the roughly $700 million of electrical acquisitions.