Company: EME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000105634-25-000078
Chunk: 69

Company: EMCOR Group, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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, for the three months ended September 30, 2024. Operating income of this segment for the nine months ended September 30, 2025 was $145.9 million, or 6.2% of revenues, compared to $135.9 million, or 5.8% of revenues, for the nine months ended September 30, 2024. For both 2025 periods, this segment’s mechanical services division continued to produce strong margins across its portfolio of HVAC retrofits, building automation and controls projects, and repair service work orders. Headwinds faced in this segment’s commercial site-based services and government site-based services divisions, given the loss of the previously referenced facilities maintenance contracts, partially offset such profitability during the first nine months of 2025. The results of this segment for the nine months ended September 30, 2024 included an $11.0 million reserve for a specific customer bankruptcy within its commercial site-based services division, which negatively impacted the segment’s operating margin by 40 basis points in such prior year period.

Our United States industrial services segment reported operating income of $6.3 million, or 2.2% of revenues, for the three months ended September 30, 2025, compared to operating income of $3.3 million, or 1.1% of revenues, for the three months ended September 30, 2024. Despite the increase in quarter-over-quarter profitability, for the nine months ended September 30, 2025, this segment reported operating income of $12.6 million, or 1.4% of revenues, compared to operating 

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income of $34.0 million, or 3.5% of revenues, for the nine months ended September 30, 2024. The decrease in operating income and operating margin of this segment for the nine months ended September 30, 2025 was 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.

Operating income of our United Kingdom building services segment was $7.6 million, or 5.6% of revenues, for the three months ended September 30, 2025, compared to $5.5 million, or 5.2% of revenues, for