AI Takeaway
EME delivered strong FY2025 results with revenue rising 16.6% to $17.0B, net income surging 26.4% to $1.27B, and diluted EPS jumping 31.0% to $28.19, reflecting robust demand for its mechanical and electrical construction services.
Revenue
$16.99B
++16.62% YoY
EPS (Basic)
$28.30
++30.96% YoY
Gross Margin
19.3%
++0.34% YoY
Operating Income
$1.71B
++27.40% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
EME's revenue grew 16.6% year-over-year to $16.99B in FY2025, up from $14.57B in the prior year, reflecting sustained demand across its mechanical and electrical construction segments. The company's ability to grow the top line at this pace suggests a healthy project backlog and strong end-market activity.
Source: Source: 10-K Income Statement
Operating income rose 27.4% to $1.71B, outpacing revenue growth of 16.6%, which drove the operating margin higher by approximately 85 basis points to 10.1%. This indicates EME is achieving meaningful operating leverage as it scales its business.
Source: Source: 10-K Income Statement
Gross profit increased 18.7% to $3.28B, with gross margin improving modestly to 19.3% from 19.0%, even as cost of revenue rose 16.1% to $13.70B. This suggests EME is effectively managing project costs and passing through inflationary pressures.
Source: Source: 10-K Income Statement
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Upgrade to unlockSG&A expenses grew 20.7% to $1.71B in FY2025, outpacing revenue growth of 16.6%. If this trend continues, it could compress margins over time. Management will need to demonstrate cost discipline to sustain profitability improvements.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $9.68 versus the $6.75 analyst consensus — a +43.4% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $16.99B | $14.57B | +16.62% |
Cost of Revenue | $13.7B | $11.8B | +16.12% |
Gross Profit | $3.28B | $2.77B | +18.73% |
Operating Income | $1.71B | $1.34B | +27.40% |
Net Income | $1.27B | $1.01B | +26.38% |
EPS (Basic) | $28.30 | $21.61 | +30.96% |
EPS (Diluted) | $28.19 | $21.52 | +30.99% |
SG&A Expense | $1.71B | $1.42B | +20.72% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $9.29B | $7.72B | +20.41% |
Current Assets | $5.94B | $5.39B | +10.17% |
Total Liabilities | $5.62B | $4.78B | +17.55% |
Current Liabilities | $4.86B | $4.15B | +17.12% |
Stockholders' Equity | $3.67B | $2.94B | +25.06% |
Cash & Equivalents | $1.11B | $1.34B | -16.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.3B | $1.41B | -7.52% |
Investing Cash Flow | $-873.59M | $-299.28M | -191.89% |
Financing Cash Flow | $-663.76M | $-555.37M | -19.52% |
Share Buybacks | $586.26M | $489.82M | +19.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 19.3% | 19.0% | +0.34% |
Operating Margin | 10.1% | 9.2% | +0.85% |
Net Margin | 7.5% | — | — |
ROE | 34.6% | — | — |
ROA | 13.7% | — | — |
Current Ratio | $1.22 | — | — |
Debt to Equity | $1.529 | — | — |
Other companies in Construction & Engineering
EME's revenue grew 16.6% year-over-year to $17.0B in FY2025, up from $14.6B in the prior year. This strong top-line growth reflects robust demand for the company's mechanical and electrical construction services across its end markets.
EME delivered record revenue of $17.0B, net income of $1.27B (+26.4%), and diluted EPS of $28.19 (+31.0%) in FY2025. Operating margins expanded to 10.1% from 9.2%, and the company repurchased $586.3M in shares, highlighting both operational strength and shareholder-friendly capital allocation.
EME's financial health appears solid, with $1.11B in cash, a current ratio of 1.22, and stockholders' equity of $3.67B. However, the debt-to-equity ratio of 1.53 and a 17% decline in cash balances are worth monitoring, as is the significant increase in investing outflows suggesting major capital deployment.
Based on the financial data, key risks include EME's exposure to the cyclical construction market, SG&A expenses growing faster than revenue at 20.7%, and a debt-to-equity ratio of 1.53 that increases financial leverage risk. The nearly 3x surge in investing cash outflows also raises potential acquisition integration risk.
Yes, EME's diluted EPS grew 31.0% to $28.19 in FY2025, up from $21.52 in the prior year. EPS growth outpaced net income growth of 26.4% due to share count reduction from $586.3M in share buybacks during the year.