Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 7 of last 7 quarters
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EMCOR's record RPOs and 44% YoY growth underscore the sustained strength of the AI infrastructure buildout, particularly in data center electrical and mechanical work. The company's ability to expand into new geographies and pivot acquisitions toward data center work positions it to capture a larger share of the multi-year AI capex cycle. Management's confidence in demand visibility for 2–3 years supports the thesis that AI infrastructure spending remains robust despite macro concerns.
EMCOR delivered record Q2 revenue of $5.15 billion, up 19.8% YoY, with operating income of $547 million (10.6% margin) and diluted EPS of $9.06, up 35%. Electrical Construction revenue grew 24% (margin 13.9%), Mechanical Construction grew 31% (margin 12.5%), Building Services grew 5.6% (margin 7.6%), and Industrial Services grew 26%. RPOs reached a record $17.14 billion, up 44% YoY, driven by data center demand and broad-based bookings. The company announced five electrical acquisitions with combined trailing-twelve-month revenue of $625 million and EBITDA of $105 million.
Management raised full-year 2026 revenue guidance to $20.0–$20.5 billion and diluted EPS to $32.00–$33.25, reflecting strong first-half performance and record RPOs. They expect continued demand across data centers, water/wastewater, healthcare, and institutional sectors, with margins supported by revenue absorption and SG&A leverage. The five announced electrical acquisitions (B&B, Sidney, Giles, Schmidt, Connelly) are expected to contribute $250–$275 million of revenue in the back half, with near-term EPS dilution from backlog amortization but accretion over 12–18 months. Management noted mechanical margins will remain pressured by GMP/prime mix.
“Demand within the network and communications sector led by data centers remains exceptionally strong. We continue to see expanding opportunities as customers invest in AI infrastructure and digital transformation initiatives.”
on Data center demand
“We now expect to earn revenue of between $20 million and $20.5 billion and diluted earnings per share of between $32 and $33.25.”
on Guidance raise
Can you talk about any bookings in the quarter or upcoming bids in the semiconductor sector?
We continue to see opportunities there. Fire life safety has been particularly strong in the data center space. Mechanically, we're doing important work in Arizona. RPOs in that space are up about 7% sequentially and from year-end. As compares ease later this year or early next, we expect growth.
Is there any sort of change in philosophy with the mechanical business given the margin mix effects?
No philosophical change. The margin pressure is due to mix—more water/wastewater and food processing work, and more prime/GMP contracts. These dynamics remain through the year, but it's not an indication of a change in how we run the business.
With the mechanical drag and incremental amortization from deals, what drove the decision to raise margin guidance?
Revenue acceleration is absorbing overhead and improving SG&A leverage. With the new revenue guidance, we feel better about operating margins. Electrical execution was very strong, and Building and Industrial contributed more. We see no reason the back half shouldn't look like the first half.