Company: EME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000105634-25-000078
Chunk: 127

Company: EMCOR Group, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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 impacted operating margin by approximately 90 basis points and approximately 80 basis points, respectively, for the three and nine months ended September 30, 2025.

Our United States mechanical construction and facilities services segment’s operating income for the three months ended September 30, 2025 was $229.3 million, or 12.9% of revenues, compared to operating income of $214.8 million, or 12.9% of revenues, for the three months ended September 30, 2024. Operating income of this segment for the nine months ended September 30, 2025 was $654.8 million, or 12.8% of revenues, compared to $579.0 million, or 12.2% of revenues, for the nine months ended September 30, 2024. In addition to the impact of greater revenues, the operating results of this segment for both 2025 periods benefited from excellent project execution and a more favorable mix of work. From a market sector perspective, this segment experienced greater profitability across a number of the sectors in which we operate, with the most significant increase in gross profit coming from network and communications. This segment’s operating income for the nine months ended September 30, 2025 included incremental acquisition contribution of $2.8 million, net of amortization expense attributable to identifiable intangible assets of $3.1 million. Partially offsetting this increased profitability was a decrease in gross profit from the commercial market sector, primarily as a result of reduced revenues within such sector.

Operating income of our United States building services segment was $59.4 million, or 7.3% of revenues, for the three months ended September 30, 2025 compared to $55.6 million, or 7.0% of revenues, 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