Core Viewpoint - Emcor Group (EME) has an average brokerage recommendation (ABR) of 1.89, indicating a consensus between Strong Buy and Buy, with 66.7% of recommendations being Strong Buy [2][5]. Brokerage Recommendation Trends - The ABR is based on recommendations from nine brokerage firms, with six firms rating it as Strong Buy [2]. - Despite the positive ABR, reliance solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [5][10]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank for Emcor Group is 3 (Hold), indicating a cautious stance despite the positive ABR [14]. Earnings Estimates - The Zacks Consensus Estimate for Emcor Group's current year earnings remains unchanged at $23.59, suggesting steady analyst views on the company's earnings prospects [13]. - The recent change in consensus estimates, along with other factors, has led to the Zacks Rank of 3 for Emcor Group, advising caution with the Buy-equivalent ABR [14].

Core Insights - EMCOR Group, Inc. (EME) is experiencing significant growth in the data center sector, driven by long-term demand in the digital infrastructure ecosystem [1][3] - The company has expanded its presence in U.S. data center markets through organic growth and strategic acquisitions, with total remaining performance obligations reaching $11.75 billion, a 28.1% year-over-year increase [1][8] - Demand from hyperscale and enterprise clients, particularly for cloud services and generative AI workloads, is a key driver of this growth [2][8] Company Performance - EMCOR's data center work surged 112% year-over-year, contributing $3.6 billion to its total backlog [1][8] - The company operates in over 16 electrical and mechanical geographies, up from five years ago, indicating substantial market expansion [2] - EMCOR's prefabrication and virtual design capabilities position it well for large-scale data center projects, with strong client visibility extending into 2026 [3] Industry Context - Other industry players like Comfort Systems USA (FIX) and MasTec, Inc. (MTZ) are also poised to benefit from the growing demand for data center infrastructure [4] - Comfort Systems reported a record first-quarter 2025 with earnings up over 75% and revenues rising 19% year-over-year, supported by a backlog of $6.9 billion [5] - MasTec is capitalizing on the rapid expansion of data center development, driven by investments in power infrastructure and fiber connectivity [6] Stock Performance and Valuation - EMCOR's stock has increased by 43.6% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry's 39.5% rise [7] - The stock is currently trading at a premium with a forward 12-month price-to-earnings ratio of 21.64X [10] - Earnings estimates for 2025 and 2026 remain unchanged at $23.59 and $25.47 per share, indicating year-over-year growth of 9.6% for 2025 and 8% for 2026 [12]

Group 1 - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules and factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than serving the numbers themselves [1] - The approach combines factor analysis with classic fundamental analysis to uncover the true story of a company and its stock, highlighting the importance of future potential over past data [1] Group 2 - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and special situations [1] - Previous roles included managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, contributing to the development of Robo Advising [1] - A passion for investor education has led to conducting numerous seminars and authoring two books on stock selection and analysis [1]

Industry Overview - The United States-based engineering and construction firms are experiencing a boom in public infrastructure demand driven by government initiatives such as the Infrastructure Investment and Jobs Act (IIJA), CHIPS Act, and Inflation Reduction Act (IRA) [1][3] - Public infrastructure spending is at its peak, primarily due to the aim of enhancing supply-chain resilience and boosting domestic manufacturing [3] Company Profiles - EMCOR Group, Inc. (EME) is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services [2] - Quanta Services, Inc. (PWR) specializes in utility and energy infrastructure and is one of North America's top contractors in electric power transmission and distribution [2] EMCOR Group, Inc. (EME) - EMCOR is benefiting from growing infrastructural demand, particularly in data centers, driven by the surge in Artificial Intelligence applications and digital transformation initiatives [5] - The acquisition of Miller Electric on February 3, 2025, enhances EMCOR's electrical construction capabilities and aligns with its growth strategy [6] - As of March 31, 2025, EMCOR's remaining performance obligations (RPOs) reached a record value of $11.75 billion, reflecting a 28% year-over-year growth [7] - EMCOR expects full-year revenues between $16.1 billion and $16.9 billion, indicating year-over-year growth of 10.5-16% [8] Quanta Services, Inc. (PWR) - Quanta's strength lies in delivering complex, large-scale projects such as power grid modernization and renewable energy infrastructure [9] - As of March 31, 2025, Quanta had a total backlog of $35.25 billion, with a 12-month backlog of $19.42 billion, showing significant growth from the previous year [12] - Quanta expects revenues between $26.7 billion and $27.2 billion for 2025, reflecting a 13.8% increase at the midpoint from 2024 [13] Financial Performance and Valuation - EMCOR has a trailing 12-month return on equity (ROE) of 37.1%, significantly higher than Quanta's average of 19.7%, indicating stronger shareholder value generation [10][20] - EMCOR trades at a lower forward price-to-earnings (P/E) ratio compared to Quanta, suggesting a more attractive entry point for investors [10][16] - The Zacks Consensus Estimate for EMCOR's 2025 EPS indicates a 9.6% year-over-year growth, while Quanta's 2025 EPS estimates imply a 15.1% improvement [18][20] Investment Outlook - EMCOR is positioned for steady growth with a discounted valuation, making it an attractive option for investors seeking sustainable returns [22][24] - Quanta, while benefiting from diversified market exposure and energy transition trends, faces challenges due to its premium valuation [23][24]

Group 1 - Emcor Group (EME) closed at $471.86, with a 0.77% increase, outperforming the S&P 500's 0.01% loss [1] - Over the past month, Emcor Group's shares gained 13.51%, exceeding the Construction sector's gain of 7.73% and the S&P 500's gain of 6.43% [1] Group 2 - Analysts expect Emcor Group to report earnings of $5.69 per share, reflecting a year-over-year growth of 8.38% [2] - The revenue forecast for the upcoming earnings report is $4.1 billion, indicating an 11.75% growth compared to the same quarter last year [2] Group 3 - For the annual period, earnings are anticipated to be $23.62 per share and revenue is expected to reach $16.5 billion, representing increases of 9.76% and 13.26% respectively [3] - Changes in analyst estimates for Emcor Group are important as they often indicate shifts in near-term business trends [3] Group 4 - The Zacks Rank system, which evaluates estimated changes, has a history of outperforming, with 1 stocks returning an average annual gain of 25% since 1988 [5] - Emcor Group currently holds a Zacks Rank of 2 (Buy) [5] Group 5 - Emcor Group has a Forward P/E ratio of 19.83, which aligns with the industry's average Forward P/E of 19.83 [6] - The Building Products - Heavy Construction industry, part of the Construction sector, ranks in the top 1% of all industries according to the Zacks Industry Rank [6]

Core Viewpoint - EMCOR Group, Inc. is benefiting from increasing infrastructural demand in the network and communications sector, particularly in data centers, healthcare, and water and wastewater markets [1] Financial Performance - Since the first-quarter 2025 earnings release, EME stock has increased by 12.2%, outperforming the broader Construction sector and the S&P 500 index [2] - The company raised the lower range of its non-GAAP diluted EPS for 2025 due to robust market trends [4] - The U.S. Construction segment contributed 68.8% to total revenues, growing by 21.3% year over year [9] - Operating income grew by 22.6% year over year, with operating margin expanding by 60 basis points to 8.2% [11] Return on Equity - EMCOR's trailing 12-month return on equity (ROE) is significantly better than the industry average, indicating efficient use of shareholders' funds [5] - Compared to peers, EMCOR's ROE is superior, with Quanta Services, Sterling Infrastructure, and MasTec showing ROEs of 18.1%, 26.6%, and 11.7% respectively [7] Market Drivers - Increased demand for data center infrastructure is driven by the rise in Artificial Intelligence applications and digital transformation initiatives [8] - The CHIPS and Science Act passed in 2022 supports investments in chip production and workforce development, further boosting demand [8] Operational Efficiency - EMCOR focuses on reducing its cost structure and improving operational performance through efficient project execution and a favorable mix of work [10] - The company aims to enhance operational efficiency in its U.S. Building services segment by leveraging profitability across HVAC retrofits and building automation projects [11] Capital Allocation - EMCOR's balanced capital allocation approach includes 42.4% of free cash allocated to acquisitions, 9.4% to capital expenditures, 4.6% to dividends, and 43.6% to share repurchases [13] - This strategy aims to maintain a balance between business reinvestments and shareholder returns [12] Earnings Estimates - Analysts have revised 2025 and 2026 earnings estimates upward due to favorable market fundamentals and operational efficiency improvements [14] - The earnings estimate for 2025 indicates a 9.8% year-over-year growth, while 2026 implies an 8.1% rise [15] Stock Performance - EME stock is trading above both the 50-day and 200-day simple moving averages, indicating a bullish trend [16] - The stock is currently trading at a premium compared to industry peers on a forward 12-month price-to-earnings (P/E) ratio basis [18] Analyst Recommendations - Analysts show optimism for EME stock, with three out of five recommendations indicating a "Strong Buy" [22] - Based on the discussed trends and technical indicators, EMCOR is considered a solid addition to investment portfolios [25]

Core Viewpoint - Emcor Group (EME) has shown strong stock performance recently, with a return of +22.6% over the past month, significantly outperforming the S&P 500 composite's +9.8% and the Zacks Building Products - Heavy Construction industry's +18.6% [2] Earnings Estimates - For the current quarter, Emcor Group is expected to report earnings of $5.69 per share, reflecting an increase of +8.4% year-over-year, with the Zacks Consensus Estimate having changed by +1.6% in the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $23.62, indicating a +9.8% change from the previous year, with a +1.1% adjustment over the last month [5] - For the next fiscal year, the consensus estimate is $25.54, which represents an +8.1% increase compared to the prior year, with a +0.6% change in the last month [6] Revenue Growth - The consensus sales estimate for the current quarter is $4.1 billion, indicating a year-over-year increase of +11.8% [11] - For the current fiscal year, the revenue estimate is $16.5 billion, reflecting a +13.3% change, while the next fiscal year's estimate of $17.26 billion indicates a +4.6% change [11] Recent Performance - In the last reported quarter, Emcor Group achieved revenues of $3.87 billion, a +12.7% increase year-over-year, and an EPS of $5.41 compared to $4.17 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +1.88% and for EPS by +18.38% [12] - Emcor Group has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [13] Valuation - Emcor Group has a Zacks Value Style Score of C, indicating it is trading at par with its peers [17] - The evaluation of the company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), suggests that its stock is fairly valued relative to its historical values and peers [15][16] Conclusion - The information presented indicates that Emcor Group may outperform the broader market in the near term, supported by its Zacks Rank 2 (Buy) [18]

Industry Overview - The Zacks Building Products - Heavy Construction industry is experiencing strong growth driven by favorable long-term trends, despite facing near-term challenges such as high interest rates and labor market pressures [1][8] - The industry includes mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on heavy civil construction projects like highways, bridges, and ports [3] Growth Drivers - A robust federal infrastructure agenda is unlocking significant investments in transportation, broadband, and energy networks, leading to increased demand in high-growth sectors [2] - The data center market's expansion is creating new opportunities for heavy construction companies, as demand for large-scale infrastructure solutions rises [5] - The ramp-up of 5G projects is benefiting industry players, with increased demand for wireline and wireless networks [6] Company Performance - EMCOR Group Inc. is benefiting from surging demand in data centers and healthcare, with a backlog of $11.8 billion reflecting strong long-term demand [32] - MasTec, with a backlog of $15.88 billion, has seen a 23.7% year-over-year increase, driven by growth across all segments [29] - Granite Construction has a record-high CAP of $5.7 billion, supported by federal and state infrastructure funding [21] Market Outlook - The industry's Zacks Industry Rank is 10, placing it in the top 4% of over 250 Zacks industries, indicating solid near-term prospects [10][11] - Aggregate earnings estimates for the industry have increased from $5.61 to $5.76 per share for 2025, reflecting growing analyst confidence [12] Recent Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, gaining 12.3% over the past year compared to the sector's 7.9% decline [14] - The industry's current forward P/E ratio is 17.43, lower than the S&P 500's 20.43, suggesting potential value [17]

Core Insights - EMCOR Group, Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][3][6] - The company's performance benefited from virtual design and construction technologies, prefabrication capabilities, and the acquisition of Miller Electric [1][2] Financial Performance - Adjusted earnings per share (EPS) reached $5.41, surpassing the Zacks Consensus Estimate of $4.57 by 18.4%, compared to $4.17 in the same quarter last year [3] - Revenues totaled $3.87 billion, exceeding the consensus estimate of $3.8 billion by 1.9% and increasing 12.7% from $3.43 billion year-over-year [6] Segment Performance - U.S. Construction Services segment revenues grew 21.3% year-over-year to $2.66 billion, with operating income increasing by 33.2% and margin expanding to 12.1% [7] - U.S. Electrical Construction and Facilities Services revenues rose 42.3% year-over-year to $1.09 billion, with operating income up 48.6% and margin at 12.5% [8] - U.S. Mechanical Construction and Facilities Services revenues increased 10.2% year-over-year to $1.57 billion, with operating income rising 23.9% and margin at 11.9% [9] - U.S. Building Services revenues decreased 4.9% year-over-year to $742.6 million, while operating income grew 8.9% [9] - U.S. Industrial Services revenues inched up 1.4% year-over-year to $359 million, but operating income dropped 62.4% [10] - U.K. Building Services revenues increased 0.6% year-over-year to $105.3 million, with operating income falling 7.3% [10] Operating Metrics - Gross margin expanded 150 basis points year-over-year to 18.7%, while operating margin improved to 8.2% from 7.6% [11] - Selling, general and administrative expenses as a percentage of revenues increased by 80 basis points to 10.4% [11] Liquidity and Cash Flow - As of March 31, 2025, cash and cash equivalents stood at $576.7 million, down from $1.34 billion at the end of 2024 [12] - Net cash provided by operating activities was $108.5 million, compared to $132.3 million in the prior year [12] - Remaining performance obligations (RPOs) increased year-over-year to $11.75 billion from $9.18 billion [12] Outlook - EMCOR expects annual revenues to be between $16.1 billion and $16.9 billion, with EPS projected in the range of $22.65 to $24.00 [13]

[First Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) This section details EMCOR's record Q1 2025 revenues, net income, and EPS, alongside strong operating performance, record RPOs, and segment-specific contributions [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) EMCOR Group, Inc. reported record revenues and diluted EPS for Q1 2025, driven by strong year-over-year growth, with non-GAAP figures adjusted for acquisition-related transaction costs | Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | YoY Change | Q1 2025 (Non-GAAP) | | :-------------------------------- | :------------- | :------------- | :--------- | :----------------- | | Revenues | $3.87 billion | $3.43 billion | +12.7% | - | | Net Income | $240.7 million | $197.1 million | +22.1% | $247.6 million | | Diluted EPS | $5.26 | $4.17 | +26.1% | $5.41 | - Q1 2025 net income included **$9.4 million ($6.9 million after taxes)** in transaction-related costs from the Miller Electric Company acquisition[2](index=2&type=chunk) [Operating Performance and Margins](index=1&type=section&id=Operating%20Performance%20and%20Margins) Operating income and margin improved significantly in Q1 2025 on both GAAP and non-GAAP bases, reflecting strong operational execution | Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | YoY Change | Q1 2025 (Non-GAAP) | | :-------------------------------- | :------------- | :------------- | :--------- | :----------------- | | Operating Income | $318.8 million | $260.0 million | +22.6% | $328.1 million | | Operating Margin | 8.2% | 7.6% | +0.6 pp | 8.5% | | SG&A Expenses | $404.0 million | $329.4 million | +22.6% | - | | SG&A as % of Revenues | 10.4% | 9.6% | +0.8 pp | - | | Income Tax Rate | 25.8% | 26.4% | -0.6 pp | - | - Operating income for Q1 2025 included depreciation and amortization expense of **$41.9 million**, up from $29.6 million in Q1 2024[3](index=3&type=chunk) [Remaining Performance Obligations (RPOs)](index=2&type=section&id=Remaining%20Performance%20Obligations%20(RPOs)) EMCOR achieved record remaining performance obligations (RPOs) of $11.75 billion as of March 31, 2025, representing a substantial year-over-year increase | Metric | As of March 31, 2025 | As of March 31, 2024 | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Total RPOs | $11.75 billion | $9.18 billion | +28.1% | | RPOs from Miller Electric | $1.0 billion | - | - | - Significant RPO growth was seen in Network and Communications, Healthcare, Manufacturing and Industrial, Hospitality and Entertainment, and Institutional sectors[7](index=7&type=chunk) - Reductions in RPOs within High-Tech Manufacturing and Commercial market sectors were due to progress on construction projects[7](index=7&type=chunk) [Segment-Specific Performance](index=2&type=section&id=Segment-Specific%20Performance) U.S. Electrical and Mechanical Construction segments drove revenue and operating income growth, with Miller Electric significantly contributing to the former Q1 2025 Segment Revenues (YoY Change) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | YoY Change | | :------------------------------------------ | :-------------- | :-------------- | :--------- | | U.S. Electrical Construction & Facilities Services | $1,087.8 million | $764.7 million | +42.3% | | U.S. Mechanical Construction & Facilities Services | $1,572.6 million | $1,427.7 million | +10.2% | | U.S. Building Services | $742.6 million | $781.2 million | -4.9% | | U.S. Industrial Services | $359.0 million | $354.1 million | +1.4% | | U.K. Building Services | $105.3 million | $104.7 million | +0.6% | Q1 2025 Segment Operating Income and Margin | Segment | Q1 2025 Operating Income | Q1 2025 Operating Margin | | :------------------------------------------ | :----------------------- | :----------------------- | | U.S. Electrical Construction & Facilities Services | $136.1 million | 12.5% | | U.S. Mechanical Construction & Facilities Services | $186.7 million | 11.9% | | U.S. Building Services | $36.4 million | 4.9% | | U.S. Industrial Services | $6.8 million | 1.9% | | U.K. Building Services | $5.0 million | 4.7% | - The acquisition of Miller Electric contributed **$183 million in revenues** to the U.S. Electrical Construction segment during the quarter[8](index=8&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) This section outlines EMCOR's reaffirmed full-year revenue guidance and narrowed non-GAAP diluted EPS range, reflecting confidence in future performance [2025 Outlook and Reaffirmations](index=2&type=section&id=2025%20Outlook%20and%20Reaffirmations) EMCOR reaffirmed its full-year 2025 revenue guidance range and narrowed its non-GAAP diluted EPS guidance range, reflecting confidence in execution Full-Year 2025 Guidance | Metric | Current Guidance (4/30/25) | Previous Guidance (2/26/25) | | :-------------------- | :------------------------- | :------------------------- | | Revenues | $16.1 billion - $16.9 billion | $16.1 billion - $16.9 billion | | Operating Margin | 8.5% - 9.2% | 8.5% - 9.2% | | Non-GAAP Diluted EPS* | $22.65 - $24.00 | $22.25 - $24.00 | - The guidance reflects confidence in the company's ability to execute with efficiency and discipline, considering potential impacts of tariffs and macroeconomic factors[10](index=10&type=chunk) - The company remains well positioned with a significant year-over-year increase in RPOs and a healthy project pipeline[10](index=10&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) This section presents the CEO's insights on strong Q1 performance, strategic drivers, successful acquisitions, and future segment expectations [CEO's Remarks on Performance and Strategy](index=2&type=section&id=CEO's%20Remarks%20on%20Performance%20and%20Strategy) CEO Tony Guzzi highlighted the continued strength of the business, driven by U.S. Electrical and Mechanical Construction segments, successful execution, and strategic expansion - Results were driven by U.S. Electrical Construction and U.S. Mechanical Construction segments, with year-over-year revenue growth of **42.3%** and **10.2%**, respectively[8](index=8&type=chunk) - Performance reflects customer confidence, proactive expansion into new geographies, and productivity from virtual design and construction technologies and prefabrication capabilities[8](index=8&type=chunk) - The integration of Miller Electric is on track, contributing **$183 million in revenues** to the U.S. Electrical Construction segment[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section provides the condensed consolidated statements of operations, balance sheets, and cash flows for Q1 2025, detailing financial position and performance [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a significant increase in revenues, gross profit, and operating income for Q1 2025 compared to Q1 2024 Condensed Consolidated Statements of Operations (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Revenues | $3,867,372 | $3,432,276 | | Cost of sales | $3,144,654 | $2,842,967 | | Gross profit | $722,718 | $589,309 | | Selling, general and administrative expenses | $403,962 | $329,356 | | Operating income | $318,756 | $259,953 | | Income before income taxes | $324,197 | $267,716 | | Net income | $240,677 | $197,149 | | Diluted earnings per common share | $5.26 | $4.17 | | Dividends declared per common share | $0.25 | $0.18 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows an increase in total assets, primarily driven by higher accounts receivable, goodwill, and identifiable intangible assets Condensed Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------- | :----------------------------- | | Total current assets | $4,910,984 | $5,389,189 | | Goodwill | $1,336,557 | $1,018,415 | | Identifiable intangible assets, net | $1,096,817 | $648,180 | | Total assets | $8,078,872 | $7,716,473 | | Total current liabilities | $4,222,262 | $4,153,863 | | Borrowings under revolving credit facility | $250,000 | $0 | | Total liabilities | $5,126,944 | $4,777,779 | | Total equity | $2,951,928 | $2,938,694 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows from operating activities decreased in Q1 2025, while investing activities saw a significant net cash outflow due to business acquisitions Condensed Consolidated Statements of Cash Flows (Q1 2025 vs. Q1 2024) | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash provided by operating activities | $108,471 | $132,264 | | Net cash used in investing activities | $(875,441) | $(19,439) | | Net cash used in financing activities | $(829) | $(58,948) | | (Decrease) increase in cash, cash equivalents, and restricted cash | $(762,930) | $52,737 | | Cash, cash equivalents, and restricted cash at end of period | $577,465 | $842,487 | - Payments for acquisitions of businesses, net of cash acquired, totaled **$850.6 million** in Q1 2025[21](index=21&type=chunk) - Repurchases of common stock amounted to **$224.8 million** in Q1 2025[21](index=21&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures, including organic revenue growth, operating income, net income, and diluted EPS, to their GAAP equivalents [Organic Revenue Growth Reconciliation](index=8&type=section&id=Organic%20Revenue%20Growth%20Reconciliation) EMCOR provides a reconciliation of organic revenue growth, a non-GAAP measure, to total GAAP revenue growth, illustrating the impact of acquisitions on overall revenue expansion Organic Revenue Growth Reconciliation (Q1 2025) | Metric | Amount (in thousands) | Percentage | | :-------------------------------- | :-------------------- | :--------- | | GAAP revenue growth | $435,096 | 12.7% | | Incremental revenues from acquisitions | $(250,900) | (7.3)% | | Organic revenue growth (non-GAAP) | $184,196 | 5.4% | [Non-GAAP Operating Income, Net Income, and Diluted EPS Reconciliation](index=10&type=section&id=Non-GAAP%20Operating%20Income%2C%20Net%20Income%2C%20and%20Diluted%20EPS%20Reconciliation) Reconciliations are provided for non-GAAP operating income, net income, and diluted EPS, adjusting for transaction expenses related to the Miller Electric acquisition Non-GAAP Operating Income Reconciliation (Q1 2025) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :------------------------------------------------ | :--------------------- | :--------------------- | | GAAP operating income | $318,756 | $259,953 | | Transaction expenses related to Miller Electric acquisition | $9,353 | - | | Non-GAAP operating income | $328,109 | $259,953 | Non-GAAP Net Income Reconciliation (Q1 2025) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :------------------------------------------------ | :--------------------- | :--------------------- | | GAAP net income | $240,677 | $197,149 | | Transaction expenses related to Miller Electric acquisition | $9,353 | - | | Tax effect of transaction expenses | $(2,410) | - | | Non-GAAP net income | $247,620 | $197,149 | Non-GAAP Diluted EPS Reconciliation (Q1 2025) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------------------ | :------ | :------ | | GAAP diluted earnings per common share | $5.26 | $4.17 | | Transaction expenses related to Miller Electric acquisition | $0.20 | - | | Tax effect of transaction expenses | $(0.05) | - | | Non-GAAP diluted earnings per common share | $5.41 | $4.17 | [Additional Information](index=3&type=section&id=Additional%20Information) This section offers an overview of EMCOR Group, Inc., along with important disclaimers regarding forward-looking statements and the use of non-GAAP financial measures [About EMCOR](index=3&type=section&id=About%20EMCOR) EMCOR Group, Inc. is a Fortune 500 company specializing in mechanical and electrical construction services, industrial and energy infrastructure, and building services - EMCOR Group, Inc. is a Fortune 500 leader in mechanical and electrical construction services, industrial and energy infrastructure, and building services[12](index=12&type=chunk) [Forward-Looking Statements & Non-GAAP Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Disclosure) This section provides standard disclaimers regarding forward-looking statements, outlining risks and uncertainties, and explains the use of non-GAAP financial measures - Forward-looking statements include anticipated future operating and financial performance, financial guidance, impact of RPOs, timing of projects, and financial impact of acquisitions[13](index=13&type=chunk) - Risks and uncertainties include adverse economic conditions, market changes, labor scarcity, supply chain disruptions, inflation, regulatory impacts, and increased competition[13](index=13&type=chunk) - Non-GAAP measures are used as key performance indicators for internal evaluation and to provide useful information to investors, but are not GAAP substitutes and may not be comparable to other companies' calculations[14](index=14&type=chunk)