EMCOR’s second quarter is the clearest single readout on where U.S. construction demand actually sits right now, and it’s not subtle. Revenue of $5.15 billion, up 19.8%. Operating margin of 10.6%. Backlog — what EMCOR calls remaining performance obligations — at a record $17.14 billion, up $5.23 billion or 43.9% in twelve months.
Then, in the 10-Q filed the same day, the acquisitions.
Four electrical contractors, roughly $700 million
EMCOR bought two electrical contractors in July, one serving the Midwest and one the Southeast. In June and July it signed definitive agreements for two more (one in Texas, one in the Midwest) expected to close in the third quarter. Aggregate upfront purchase price across all four: about $700 million, funded from cash on hand with the revolver available if needed. All of it goes into the U.S. electrical construction and facilities services segment.
Chairman, President and CEO Tony Guzzi framed the strategy: “Our recent and pending acquisitions reflect our focus on complementing our existing operations, expanding our capabilities, and entering new geographies to better serve our customers.”
That’s the polite version. The blunt version is that electrical capacity is the scarcest thing in nonresidential construction, and EMCOR is buying it rather than waiting to hire it. The company already bought Miller Electric for $876.8 million in 2025.
Where the backlog is coming from
EMCOR named the growth sectors: Network and Communications, Water and Wastewater, Institutional, and Healthcare. Three of those four are the same categories showing up in institutional capital plans and municipal infrastructure programs nationwide. Data centers sit inside Network and Communications.
“We had an exceptional second quarter, growing revenues nearly 20% and earning an impressive 10.6% operating margin,” Guzzi said. “Our Remaining Performance Obligations are once again at a record level reflecting sustained demand across several key market sectors.”
Guidance moved up across the board: revenue to $20.00-$20.50 billion from $18.50-$19.25 billion, operating margin to 9.5%-9.8%, diluted EPS to $32.00-$33.25 from $28.25-$29.75.
Q2 net income was $403.7 million, or $9.06 per diluted share, against $302.2 million and $6.72 a year earlier. First-half revenue reached $9.78 billion. The company repurchased $177.7 million of stock in the quarter and pays a $0.40 quarterly dividend, up from $0.25.
Norwalk-headquartered EMCOR runs about 100 operating subsidiaries. Cash sat at $924.4 million against total assets of $10.16 billion. There is no sign the company thinks the mechanical-electrical squeeze eases soon.