EM

EMCOR Group, Inc. stock research

Jun 30, 2025

FY2025 Q2

EMCOR Group (EME) Gross Margin — Quarter Ended Jun 30, 2025

Revenue and gross profit both rose compared to the prior quarter and the same quarter a year earlier, while cost of revenue also increased. Gross margin improved from the prior quarter and from the year-ago quarter, reflecting a larger share of revenue retained as gross profit.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue and gross profit both rose compared to the prior quarter and the same quarter a year earlier, while cost of revenue also increased. Gross margin improved from the prior quarter and from the year-ago quarter, reflecting a larger share of revenue retained as gross profit.

  • Gross profit grew at a faster rate than revenue, leading to an improved gross margin. This is the strongest observable margin driver.
  • Gross margin for the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, indicating a sustained improvement.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

19.4%

Gross profit

$833.8M

Revenue

$4.3B

Cost of revenue

$3.5B

Quarter-over-quarter change

+0.7 pts

Year-over-year change

+0.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$3.7B$734.7M$3.0B19.9%
Dec 31, 2024$3.8B$757.0M$3.0B20.1%
Mar 31, 2025$3.9B$722.7M$3.1B18.7%
Jun 30, 2025$4.3B$833.8M$3.5B19.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

+0.7 pts

Year-over-year change

Jun 30, 2024

+0.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross profit grew at a faster rate than revenue, leading to an improved gross margin. This is the strongest observable margin driver.

Gross margin for the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, indicating a sustained improvement.

Monitor whether the growth rate of cost of revenue continues to lag revenue growth, as this directly influences gross margin trends.