Company: EME
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000105634-25-000029
Chunk: 127

Company: EMCOR Group, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 127
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 to support our organic revenue growth as well as annual cost of living adjustments, (b) incentive compensation expense, predominantly within our United States construction segments, given higher projected annual operating results, and (c) 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.