US Construction Firm EMCOR Posts Record Q3 Revenue as Data Center Backlog Doubles to $8.74 Billion

EMCOR Group (NYSE: EME), a US-based provider of electrical and mechanical construction services, reported record third-quarter results on October 29, 2026, driven primarily by demand for artificial intelligence data center construction. Quarterly revenue rose 28.8% year-over-year to $5.54 billion, including 25.5% organic growth. Adjusted diluted earnings per share increased 46.1% to $9.60, while the adjusted operating margin expanded by 110 basis points to 10.5%.

The Electrical Construction segment saw revenue increase 44.3% to $1.85 billion, and Mechanical Construction revenue climbed 43.1% to $2.55 billion. Together, these segments generated $4.4 billion in quarterly revenue with a combined operating margin of 12.6%. Network and communications work, largely consisting of data center projects, was a major growth driver: Electrical Construction revenue in this sector grew 68%, while Mechanical Construction revenue nearly doubled (up ~130%), aided by expanded cooling requirements on data center sites.

Remaining performance obligations (RPOs), a key indicator of future revenue visibility, reached a record $18.57 billion at quarter-end, up 47% from a year earlier. Notably, data center RPOs totaled $8.74 billion, more than double the prior-year level and up 13% sequentially. Chief Financial Officer Jason Nalbandian noted that most of the RPO increase was organic despite strong current revenue growth. CEO Guzzi stated that EMCOR primarily serves large hyperscalers and their support companies, rather than speculative 'neocloud' markets.

Based on continued demand, EMCOR raised its full-year 2026 outlook, now expecting revenue between $20.6 billion and $21 billion and adjusted diluted EPS between $34.50 and $35.50. The board also authorized an additional $500 million for common-stock repurchases. Through September 30, the company had returned $510 million to shareholders via dividends and buybacks.