EMCOR Group, Inc. stock research
FY2025 Q4
EMCOR Group (EME) Gross Margin — Quarter Ended Dec 31, 2025
In the most recent quarter, revenue and gross profit both increased compared to the prior quarter, and the gross margin improved as gross profit rose at a faster pace than revenue. When compared to the same quarter a year earlier, revenue and gross profit were also higher, but the gross margin was lower because the growth in cost of revenue exceeded the growth in revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
In the most recent quarter, revenue and gross profit both increased compared to the prior quarter, and the gross margin improved as gross profit rose at a faster pace than revenue. When compared to the same quarter a year earlier, revenue and gross profit were also higher, but the gross margin was lower because the growth in cost of revenue exceeded the growth in revenue.
- The strongest observable driver is the relative change in cost of revenue versus revenue. The improvement in gross margin from the prior quarter reflects a proportionally smaller increase in cost of revenue, while the year-over-year decline indicates that cost of revenue has grown faster than revenue over the longer period.
- Sequentially, the gross margin improved. Compared to the same quarter last year, the gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.7%
Gross profit
$891.2M
Revenue
$4.5B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $3.9B | $722.7M | $3.1B | 18.7% |
| Jun 30, 2025 | $4.3B | $833.8M | $3.5B | 19.4% |
| Sep 30, 2025 | $4.3B | $835.3M | $3.5B | 19.4% |
| Dec 31, 2025 | $4.5B | $891.2M | $3.6B | 19.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.3 pts
Year-over-year change
Dec 31, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relative change in cost of revenue versus revenue. The improvement in gross margin from the prior quarter reflects a proportionally smaller increase in cost of revenue, while the year-over-year decline indicates that cost of revenue has grown faster than revenue over the longer period.
Sequentially, the gross margin improved. Compared to the same quarter last year, the gross margin weakened.
Monitor the trend in cost of revenue growth relative to revenue growth to assess whether the margin improvement can be sustained.