Company: EME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000105634-25-000078
Chunk: 122

Company: EMCOR Group, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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i) the recent award of certain facilities maintenance contracts by new customers and (ii) scope expansion with existing customers, and (b) increased project work, largely within the manufacturing and industrial and network and communications market sectors. Revenues of this segment for the three and nine months ended September 30, 2025 were positively impacted by $4.8 million and $11.6 million, respectively, given favorable exchange rate movements for the British pound versus the United States dollar.

Cost of sales and gross profit

The following table presents our cost of sales, gross profit (revenues less cost of sales), and gross profit as a percentage of revenues (“gross profit margin”) (in thousands, except for percentages): 

 For the three months endedSeptember 30,For the nine months endedSeptember 30, 2025202420252024Cost of sales$3,466,216 $2,962,198 $10,081,499 $8,788,061 Gross profit$835,313 $734,726 $2,391,802 $2,008,036 Gross profit margin19.4 %19.9 %19.2 %18.6 %

Consolidated gross profit for the three months ended September 30, 2025 was $835.3 million, or 19.4% of revenues, compared to consolidated gross profit of $734.7 million, or 19.9% of revenues, for the three months ended September 30, 2024. Gross profit for the three months ended September 30, 2025 included incremental acquisition contribution of $37.8 million, net of amortization expense attributable to identifiable intangible assets of $7.1 million. Excluding the impact of acquisitions, gross profit for the three months ended September 30, 2025 increased as a result of greater contribution from both of our United States construction segments, given the revenue growth referenced above. Despite overall excellent project execution during the quarter, our consolidated gross profit margin contracted by 50 basis points period-over-period largely as a result of a decrease in the gross profit margin of our United States electrical construction and facilities services segment due to: (a) lower profitability on certain projects in new geographies where we encountered reduced labor productivity or availability while investing in the development of a workforce and (b) the impact of the incremental intangible asset amortization expense resulting from the acquisition of Miller Electric.