Company: EME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000105634-25-000046
Chunk: 152

Company: EMCOR Group, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 152
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 perspective, this segment also experienced greater profitability across a number of the sectors in which we operate, with the most significant increase in gross profit coming from network and communications. This segment’s operating income for the six months ended June 30, 2025 included incremental acquisition contribution of $2.3 million, net of amortization expense attributable to identifiable intangible assets of $2.1 million. Partially offsetting this increased profitability was a decrease in gross profit from the commercial market sector, primarily as a result of the reduced revenues previously referenced.

Operating income of our United States building services segment was $50.0 million, or 6.3% of revenues, for the three months ended June 30, 2025 compared to $46.8 million, or 6.0% of revenues, for the three months ended June 30, 2024. Operating income of this segment for the six months ended June 30, 2025 was $86.5 million, or 5.6% of revenues, compared to $80.3 million, or 5.1% of revenues, for the six months ended June 30, 2024. For both 2025 periods, this segment’s mechanical services division continued to produce strong margins across its portfolio of HVAC retrofits, building automation and controls projects, and repair service work orders. Headwinds faced in this segment’s commercial site-based services and government site-based services divisions, given the loss of the previously referenced facilities maintenance contracts, partially offset such profitability during the first six months of 2025. The results of this segment for the six months ended June 30, 2024 included an $11.0 million reserve for a specific customer bankruptcy within its commercial site-based services division, which negatively impacted the segment’s operating margin by 70 basis points in such prior year period.

Our United States industrial services segment reported an operating loss of $0.4 million, or (0.1)% of revenues, for the three months ended June 30, 2025, compared to operating income of $12.7 million, or 3.9% of revenues, for the three months ended June 30, 2024. For the six months ended June 30, 2025, this segment reported operating income of $6.3 million, or 1.0% of revenues, compared to operating income of $30.7 million, or 4.5% of revenues, for the six months ended June 30