EMCOR Group, Inc. (EME) - Stock Analysis
Last updated: Jan 12, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
EMCOR Group shows strong Q3 2025 earnings with record backlog (+29%), revenue up 16.4% YoY, raised guidance, significant dividend hike and share repurchase program. Although short-term technicals are weak, fundamental growth and capital discipline indicate moderate near-term price appreciation potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High ROE ⢠Robust FCF ⢠Elevated leverage EME delivers strong profitability and free cash flow (high ROE, solid margins and FCF) but faces rising valuation multiples, elevated leverage and weakening short-term liquidity.
Price Behavior
Key Price Behavior Insights: ⢠Rebound momentum ⢠Support holding ⢠Resistance stall Support Level: $590â$600 Resistance Level: $655â$660 Over the last month EME rebounded from about $596 to the mid-$650s, finding support near $590â$600 but stalling below $655â$660 resistance.
Sentiment & News
Key News Insights: ⢠Record RPO ⢠Cash flow strength ⢠Dividend + buybacks EMCOR's strong 9âmonth 2025 cash flow, record $12.61B RPO, margin expansion and targeted acquisitions, plus dividend and buyback increases and institutional buying, support a bullish 2026 outlook.
AI Summary
EMCOR has shifted from a cyclical contractor to a cash-generative infrastructure consolidator where future returns will depend as much on disciplined M&A, divestitures and buybacks as on backlog conversionâso underweight or hedge until management proves consistent margin retention and accretive deal execution. Key risk: large receivables, rising intangibles and tighter liquidity mean a single major project overrun or collection hit could force stepped-up leverage or curbed capital returns.
Description
EMCOR Group, Inc. provides electrical and mechanical construction and a broad range of facilities services across the United States and the United Kingdom, covering design, installation, commissioning, operation and maintenance. Its capabilities span power transmission and generation systems, building electrical and low-voltage systems, HVAC and plumbing, water and wastewater treatment, process instrumentation and industrial services for oil, gas and petrochemical clients, as well as metal fabrication, rigging and related trades. The company also delivers site-based facility management and maintenance, outage and mobile mechanical services, energy program management, and support services for commercial, government and utility customers; it was incorporated in 1987 and is headquartered in Norwalk, Connecticut.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 26 | Jan 2 | EME | EMCOR Group, Inc. | EMCOR Group shows strong Q3 2025 earnings with record backlog (+29%), revenue up 16.4% YoY, raised guidance, significant dividend hike and share repurchase program. Although short-term technicals are weak, fundamental growth and capital discipline indicate moderate near-term price appreciation potential. | Closed | +1.8% |