Company: EME
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000105634-25-000046
Chunk: 122

Company: EMCOR Group, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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, general and administrative expenses for the three and six months ended June 30, 2025 increased by $32.9 million and $80.0 million, respectively, primarily as a result of greater: (a) incentive compensation expense, predominantly within our United States construction segments, given higher projected annual operating results, (b) salaries and related employment expenses, due to additional headcount to support our organic revenue growth as well as annual cost of living adjustments, and (c) computer hardware and software costs due to various information technology and cybersecurity initiatives currently in process. 

The 50 basis point increase in our SG&A margin for the six months ended June 30, 2025 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 and United States industrial services segments, and (c) the impact of the $9.4 million of transaction related costs referenced above.

35

Operating income (loss)

The following tables present 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 June 30,2025% ofSegmentRevenues2024% ofSegmentRevenuesOperating income (loss):United States electrical construction and facilities services$157,644 11.8 %$88,577 11.1 %United States mechanical construction and facilities services238,737 13.6 %213,440 12.9 %United States building services50,045 6.3 %46,839 6.0 %United States industrial services(419)(0.1)%12,746 3.9 %Total United States operations446,007 10.7 %361,602 10.2 %United Kingdom building services8,425 6.3 %5,777 5.4 %Corporate administration(39,220)— (34,571)— Consolidated operating income415,212 9.6 %332,808 9.1 %Other items:Net periodic pension income55 221 Interest (expense) income, net(3,240)6,106 Income before income taxes$412,027 $