Company: EME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000105634-25-000046
Chunk: 153

Company: EMCOR Group, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 153
---
, 2024. The decreases in profitability of this segment for both 2025 periods were primarily a result of: (a) the reductions in segment revenues discussed above, which also resulted in a greater amount of unabsorbed labor costs, and (b) a less favorable revenue mix when compared to the prior year period, which benefited from turnaround projects of a greater size as well as a large renewable fuel project. In addition, the results of this segment for the six months ended June 30, 2025 were negatively impacted by a $5.0 million increase in the allowance for credit losses, which reduced its operating margin by 80 basis points.

Operating income of our United Kingdom building services segment was $8.4 million, or 6.3% of revenues, for the three months ended June 30, 2025, compared to $5.8 million, or 5.4% of revenues, for the three months ended June 30, 2024. Operating income for the six months ended June 30, 2025 was $13.4 million, or 5.6% of revenues, compared to $11.2 million, or 5.3% of revenues, for the six months ended June 30, 2024. For both 2025 periods, the increase in this segment’s operating income and operating margin was primarily due to the revenue growth it experienced, which resulted in: (a) greater gross profit and (b) a reduction in SG&A margin as our segment management team leveraged its overhead cost structure. Operating income of this segment for the three and six months ended June 30, 2025 were positively impacted by $0.5 million as a result of favorable exchange rate movements for the British pound versus the United States dollar.

Our corporate administration expenses for the three months ended June 30, 2025 were $39.2 million, compared to $34.6 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, our corporate administrative expenses were $91.4 million, compared to $73.7 million for the six months ended June 30, 2024. Corporate expenses for the first six months of 2025 included $9.4 million of transaction related costs incurred in connection with the acquisition of Miller Electric. Excluding these items, the increase in corporate expenses for both 2025 periods was primarily a result of greater computer hardware and software