EMCOR Group reported record third-quarter 2026 results, with revenue, earnings and remaining performance obligations all sharply higher than a year earlier. The building-services contractor also raised its full-year revenue and adjusted earnings forecasts and expanded its share-repurchase authorization.
Revenue growth remained strong even after adjusting for acquisitions and the sale of the company’s U.K. operations. A $34 million noncash impairment charge reduced reported operating income and earnings; figures excluding that charge were higher.
Key details
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Revenue reached a quarterly record of $5.54 billion, up 28.8% from $4.30 billion a year earlier. On an organic basis—adjusting for acquisition contributions and the U.K. divestiture—revenue increased 25.5%.
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Net income was $399.9 million, or $9.04 per diluted share, compared with $295.4 million, or $6.57 per share, in the third quarter of 2025. Results included a $34 million noncash impairment of identifiable intangible assets, equal to $24.7 million after tax. Excluding the impairment, non-GAAP net income was $424.7 million, or $9.60 per diluted share; adjusted diluted EPS rose 46.1% year over year.
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Operating income totaled $545.8 million, or 9.8% of revenue, versus $405.7 million, or 9.4%, a year earlier. Excluding the impairment, non-GAAP operating income was $579.8 million and the operating margin was 10.5%.
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Selling, general and administrative expenses were $528.4 million, equal to 9.5% of revenue, down from 10.0% of revenue a year ago. The effective tax rate was 27.2%, compared with 27.5%.
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Remaining performance obligations reached a record $18.57 billion, up $5.96 billion, or 47.2%, from a year earlier. EMCOR attributed the increase to new contract awards across most of its operating sectors.
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The company raised its 2026 revenue outlook to $20.6 billion–$21.0 billion, from a previous range of $20.0 billion–$20.5 billion.
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Its 2026 non-GAAP diluted EPS forecast increased to $34.50–$35.50, up from $32.00–$33.25.
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EMCOR expanded its share-repurchase program by $500 million. The increase expands the amount authorized for repurchases; it does not by itself indicate how much the company will buy back or when.
The higher forecast ranges reflect management’s increased expectations for full-year revenue and adjusted earnings. The record volume of remaining performance obligations indicates a larger base of contracted work awaiting performance, while the expanded repurchase authorization gives EMCOR more capacity to return capital through share buybacks.