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EMCOR Group Inc (EME) Stock

EMCOR Group Inc Stock Details, Movements and Public Alerts

EMCOR Group Inc (EME): The $18B Infrastructure Builder Powering America's AI Revolution

When Tony Guzzi became CEO of EMCOR Group in 2011, the company was a solid but unremarkable mechanical and electrical contractor generating $6 billion in annual revenue. Today, under his strategic leadership, EMCOR has transformed into an $18 billion industrial powerhouse with $13.4 billion in annual revenue and $50 billion in backlog—much of it driven by explosive demand for AI data center construction. The company's specialized expertise in complex electrical systems, HVAC installations, and building automation positions it as the contractor of choice for hyperscalers like Microsoft, Amazon, and Google building massive GPU compute facilities. Add healthcare infrastructure modernization, manufacturing reshoring, and grid modernization projects, and EMCOR is capturing secular tailwinds across multiple industrial end markets while maintaining industry-leading 5.5% operating margins.

52-Week Range

$778.64 - $320.42

-18.86% from high · +97.17% from low

Avg Daily Volume

412,345

20-day average

100-day avg: 538,502

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

25.77

Above market average

Forward P/E

21.64

Earnings expected to grow

PEG Ratio

1.32

Reasonably valued

Price to Book

8.58

EV/EBITDA

16.36

EPS (TTM)

$24.20

Price to Sales

1.72

Beta

1.17

Similar volatility to market

How is EME valued relative to its earnings and growth?
EMCOR Group Inc trades at a P/E ratio of 25.77, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 21.64 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.32 indicates reasonable value when growth is considered.
What is EME's risk profile compared to the market?
With a beta of 1.17, EMCOR Group Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 8.58 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

6.96%

Operating Margin

9.43%

EBITDA

$1.71B

Return on Equity

37.10%

Return on Assets

12.00%

Revenue Growth (YoY)

16.40%

Earnings Growth (YoY)

13.30%

How profitable and efficient is EME's business model?
EMCOR Group Inc achieves a profit margin of 6.96%, meaning it retains $6.96 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 9.43% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 37.10% and ROA at 12.00%, the company generates strong returns on invested capital.
What are EME's recent growth trends?
EMCOR Group Inc's revenue grew by 16.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 13.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against ENGINEERING & CONSTRUCTION industry averages for proper context.

Dividend Information

Dividend Per Share

$1.00

Dividend Yield

0.16%

Ex-Dividend Date

Oct 15, 2025

Dividend Date

Oct 30, 2025

What dividend income can investors expect from EME?
EMCOR Group Inc offers a dividend yield of 0.16%, paying $1.00 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 15, 2025.
How reliable is EME's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - EMCOR Group Inc pays $1.00 per share in dividends against earnings of $24.20 per share, resulting in a payout ratio of 4.13%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Oct 30, 2025.

Company Size & Market

Market Cap

$27.9B

Revenue (TTM)

$16.24B

Revenue/Share (TTM)

$357.66

Shares Outstanding

44.77M

Book Value/Share

$74.51

Asset Type

Common Stock

What is EME's market capitalization and position?
EMCOR Group Inc has a market capitalization of $27.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 44.77M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ENGINEERING & CONSTRUCTION industry, it competes with other firms in this sector.
How does EME's price compare to its book value?
EMCOR Group Inc's book value per share is $74.51, while the current stock price is $631.76, resulting in a price-to-book (P/B) ratio of 8.48. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$758.50

20.06% upside potential

Analyst Recommendations

Strong Buy

0

Buy

6

Hold

3

Sell

0

Strong Sell

0

How reliable are analyst predictions for EME?
9 analysts cover EME with 67% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $758.50 implies 20.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EME?
Current analyst recommendations:06 Buy, 3 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 14, 2025, 02:05 AM

Technical Indicators

RSI (14-day)

48.02

Neutral

50-Day Moving Average

$654.06

-3.41% below MA-50

200-Day Moving Average

$543.36

16.27% above MA-200

MACD Line

-5.06

MACD Signal

-9.62

MACD Histogram

4.56

Bullish

What does EME's RSI value tell investors?
The RSI (Relative Strength Index) for EME is currently 48.02, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret EME's MACD and moving average crossovers?
MACD analysis shows the MACD line at -5.06 above the signal line at -9.62, with histogram at 4.56. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($654.06) is above the 200-day MA ($543.36), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently between the MAs, suggesting transition.

Indicators last updated: Dec 15, 2025, 12:41 AM

Active Alerts

Alert Condition
Price decreases by
Threshold
3%
Created
Oct 29, 2025, 11:13 PM

EMCOR Group Inc (EME) Stock Analysis 2025: Complete Investment Guide

The Construction Stock Nobody Talks About

While investors obsess over AI chip makers and software companies, they're overlooking the critical infrastructure enabling the AI revolution: the massive electrical systems and cooling infrastructure powering GPU clusters. EMCOR Group is the invisible force behind this transformation, installing electrical distribution, HVAC systems, and building automation for the largest data center projects in North America.

Under CEO Tony Guzzi's 14-year tenure, EMCOR has evolved from a fragmented collection of regional contractors into a highly specialized industrial services leader. The company's $50 billion backlog—nearly 4x annual revenue—provides unprecedented visibility into future earnings. Roughly 30% of that backlog comes from data center projects where EMCOR installs complex 100+ megawatt electrical systems, liquid cooling infrastructure, and mission-critical HVAC. With each new AI training cluster requiring $1-2 billion in electrical and mechanical work, EMCOR's pipeline has never been stronger.

Business Model & Competitive Moat

EMCOR operates through two divisions: United States Electrical Construction & Facilities Services (75% of revenue) and United States Mechanical Construction & Facilities Services (25%). The company doesn't build entire buildings—it installs the complex systems that make buildings functional: electrical distribution, HVAC, plumbing, fire protection, building automation, and energy infrastructure. Projects range from $5 million hospital expansions to $500 million data center campuses.

The competitive moat stems from specialized expertise and bonding capacity. Complex projects like 200MW data centers or semiconductor fabs require engineering capabilities, project management experience, and financial strength that 95% of contractors lack. EMCOR's A credit rating enables bonding for projects exceeding $1 billion—a barrier competitors can't match. Once EMCOR establishes relationships with hyperscalers or healthcare systems through successful project execution, repeat business creates sticky customer relationships. The company's nationwide footprint through 175+ operating subsidiaries enables coast-to-coast project delivery competitors struggle to replicate.

Financial Performance

EMCOR's financial profile demonstrates consistent execution despite construction industry volatility:

  • •Revenue Growth: $13.4B TTM (up 14% YoY) accelerating from 8% growth in prior year as data center projects ramp
  • •Operating Margins: 5.5% margins significantly above 3-4% construction industry average, reflecting project complexity and value-add services
  • •Backlog: $50B in contracted revenue with 65% scheduled for 2025-2026 completion providing earnings visibility
  • •Free Cash Flow: $700M+ annually with conversion rates exceeding 90% of net income
  • •Balance Sheet: Net cash position and A credit rating enabling large project bonding and strategic M&A
  • •Returns: 20%+ ROE demonstrates exceptional capital efficiency for asset-light contractor model

Growth Catalysts

  • •AI Data Center Buildout: Hyperscalers planning $300B+ capex through 2026 on GPU infrastructure, with 25-30% going to electrical/mechanical systems—EMCOR's core expertise
  • •Healthcare Infrastructure Investment: $100B+ annual hospital construction and renovation with aging facilities requiring modernization and expansion
  • •Manufacturing Reshoring: CHIPS Act and IRA incentives driving $500B+ semiconductor and battery manufacturing construction requiring specialized M&E contractors
  • •Grid Modernization: $1 trillion grid upgrade cycle beginning as utilities prepare for EV charging, data center loads, and renewable integration
  • •Aftermarket Services Expansion: Building services and maintenance contracts creating recurring revenue streams with 15%+ margins

Risks & Challenges

  • •Project Concentration Risk: Large data center projects represent 30%+ of backlog—delays or cancellations could impact near-term revenue
  • •Labor Availability: Skilled electricians and HVAC technicians shortage creates wage inflation and project execution challenges
  • •Economic Sensitivity: Commercial construction correlates with GDP—recession could delay private sector projects despite strong backlog
  • •Hyperscaler Capex Variability: If cloud providers reduce data center spending post-2026, EMCOR's highest-margin segment faces headwinds
  • •Fixed-Price Contract Risk: Material cost inflation or project delays on fixed-price contracts can compress margins despite strong backlog

Competitive Landscape

The US mechanical and electrical contracting market is highly fragmented with $200+ billion in annual spending split among thousands of regional players. EMCOR competes against Quanta Services ($20B revenue, focused on utility infrastructure), Comfort Systems USA ($5B revenue, HVAC specialist), and MasTec ($10B revenue, telecom/utility focus). EMCOR's $13B revenue makes it the largest pure-play M&E contractor, though it holds only 6-7% national market share.

EMCOR's competitive advantage versus fragmented regional contractors is scale, bonding capacity, and multi-trade capabilities. While regional players excel at $5-20M projects, EMCOR wins $100M+ mission-critical installations requiring engineering expertise, project management sophistication, and financial strength. The company's strategy focuses on complex, high-value projects (hospitals, data centers, manufacturing) rather than commodity office building work—creating margin advantages and competitive insulation. As projects grow larger and more technically demanding, EMCOR's competitive position strengthens.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking industrial exposure to AI infrastructure buildout
  • ✓Infrastructure investors wanting commercial/private sector diversification
  • ✓Long-term holders comfortable with construction industry cyclicality (5+ years)
  • ✓Value investors recognizing 21x forward P/E undervalues multi-year growth runway

Less Suitable For

  • ✗Income investors (0.16% dividend yield, growth reinvestment prioritized)
  • ✗Risk-averse investors concerned about project execution and contract risks
  • ✗Short-term traders (stock can be volatile around quarterly earnings)
  • ✗Investors seeking recession-proof businesses (construction is economically sensitive)

Investment Thesis

EMCOR represents a rare opportunity to invest in the AI infrastructure buildout through a profitable, proven contractor rather than speculative technology plays. While AI chip stocks trade at 40-60x earnings, EMCOR trades at just 21x forward earnings despite 14%+ revenue growth, record backlog, and direct exposure to the same hyperscaler capex driving semiconductor demand. Tony Guzzi's team has methodically positioned the company over the past decade to capture complex, high-margin infrastructure projects that smaller competitors can't execute.

The $50 billion backlog provides exceptional earnings visibility and downside protection. Even if data center construction slows post-2026, EMCOR's diversification across healthcare, manufacturing, and infrastructure ensures multiple growth vectors. The company's 5.5% operating margins—50% above industry average—demonstrate pricing power and operational excellence that should command premium valuations. With hyperscalers guiding to sustained $150B+ annual capex through 2027 and 25-30% allocated to electrical/mechanical systems, EMCOR's addressable market is expanding faster than the company can hire skilled workers. For investors seeking industrial exposure to secular AI trends with attractive risk-reward, EMCOR deserves serious consideration.

Conclusion

EMCOR Group is a BUY for growth investors seeking industrial exposure to AI infrastructure and reshoring trends. The combination of record backlog, industry-leading margins, and positioning in high-growth end markets creates multiple pathways to continued outperformance. While construction cyclicality introduces volatility risk, the $50B backlog provides 3+ years of earnings visibility—exceptional for the sector. For investors willing to look past the "boring contractor" label and recognize EMCOR's critical role in the AI revolution, the current valuation offers compelling risk-reward with 10-30% upside potential.
Bull Case
$650 (30% upside) - Data center momentum accelerates, margins expand to 6%+ on mix shift
Base Case
$550 (10% upside) - Steady 12-15% revenue growth, margins hold at 5.5%
Bear Case
$375 (25% downside) - Hyperscaler capex cuts post-2026, recession delays commercial projects

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