EMCOR Q2 revenue up 17.4%, beats estimates

Overview

• EMCOR Q2 revenue rises 17.4% yr/yr, beating analyst expectations, per LSEG data

• Record Q2 diluted EPS of $6.72, up 28% yr/yr

• Co raises 2025 non-GAAP EPS guidance

Outlook

• EMCOR narrows 2025 revenue guidance to $16.4 bln - $16.9 bln

• Company raises 2025 non-GAAP EPS guidance to $24.50 - $25.75

• EMCOR sees strong demand for specialty contracting services

• Company cites robust pipeline supporting positive outlook

Result Drivers

• SECTOR GROWTH - Significant revenue growth in Network and Communications, Institutional, Manufacturing and Industrial, Healthcare, and Hospitality and Entertainment sectors

• CONSTRUCTION SEGMENTS - Record revenues and operating margins in Electrical and Mechanical Construction segments, driven by strategic expansion and productivity improvements

• HIGH RPOs - Record remaining performance obligations of $11.91 bln, indicating strong future project pipeline

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for EMCOR Group Inc is $542.50, about 17.8% below its July 30 closing price of $639.33

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 16 three months ago

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