Company: EME
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000105634-25-000029
Chunk: 55

Company: EMCOR Group, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 computer hardware and software costs due to various information technology and cybersecurity initiatives currently in process. These increases were partially offset by a decrease in the provision for credit losses year-over-year.

The 80 basis point year-over-year increase in our SG&A margin was primarily due to: (a) improved gross profit and gross profit margin, which resulted in the above referenced increase in incentive compensation expense across certain of our operating subsidiaries, (b) a decrease in revenues, without a commensurate decrease in selling, general and administrative expenses, within our United States building services segment, and (c) the impact of the $9.4 million of transaction related costs referenced above.

Operating income (loss)

The following table presents our operating income (loss) and operating income (loss) as a percentage of segment revenues (“operating margin”) (in thousands, except for percentages): 

 For the three months ended March 31,2025% ofSegmentRevenues2024% ofSegmentRevenuesOperating income (loss):United States electrical construction and facilities services$136,057 12.5 %$91,589 12.0 %United States mechanical construction and facilities services186,747 11.9 %150,720 10.6 %United States building services36,423 4.9 %33,459 4.3 %United States industrial services6,760 1.9 %17,966 5.1 %Total United States operations365,987 9.7 %293,734 8.8 %United Kingdom building services4,987 4.7 %5,377 5.1 %Corporate administration(52,218)— (39,158)— Consolidated operating income318,756 8.2 %259,953 7.6 %Other items:Net periodic pension income54 222 Interest income, net5,387 7,541 Income before income taxes$324,197 $267,716 

Operating income for the three months ended March 31, 2025 was $318.8 million, an increase of $58.8 million compared to operating income of $260.0 million for the three months ended March 31, 2024. Operating margin for the three months ended March 31, 2025 was 8.2% compared to an operating margin of 7.6% for the three months ended March 31,