EMCOR Group, Inc. stock research
FY2025 Q1
EMCOR Group (EME) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose year-over-year but fell sequentially. Consequently, gross margin weakened from the prior quarter but improved from a year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose year-over-year but fell sequentially. Consequently, gross margin weakened from the prior quarter but improved from a year earlier.
- The year-over-year expansion in gross margin was driven by gross profit growing at a faster pace than revenue, as noted in the filing context which attributes revenue growth to strong demand across most segments and incremental acquisition contributions. The sequential contraction, however, reflects a higher cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin was lower as revenue increased but gross profit declined. Relative to the same quarter last year, gross margin was higher, with both revenue and gross profit increasing.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.7%
Gross profit
$722.7M
Revenue
$3.9B
Cost of revenue
$3.1B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+1.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $3.7B | $684.0M | $3.0B | 18.7% |
| Sep 30, 2024 | $3.7B | $734.7M | $3.0B | 19.9% |
| Dec 31, 2024 | $3.8B | $757.0M | $3.0B | 20.1% |
| Mar 31, 2025 | $3.9B | $722.7M | $3.1B | 18.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.4 pts
Year-over-year change
Mar 31, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year expansion in gross margin was driven by gross profit growing at a faster pace than revenue, as noted in the filing context which attributes revenue growth to strong demand across most segments and incremental acquisition contributions. The sequential contraction, however, reflects a higher cost of revenue relative to revenue.
Compared to the prior quarter, gross margin was lower as revenue increased but gross profit declined. Relative to the same quarter last year, gross margin was higher, with both revenue and gross profit increasing.
Monitor the impact of acquisitions on future margin performance, as the filing notes incremental acquisition contribution to revenue.