EMEHIGH SIGNALOPERATIONAL10-K

EME completed the divestiture of its United Kingdom operations in December 2025 while substantially reducing total debt and achieving strong financial performance growth across key metrics.

The UK divestiture represents a strategic focus on the company's core US operations, which are benefiting from favorable secular trends including data center expansion for AI/cloud computing and supply chain reshoring. The dramatic debt reduction from $231.6M to $2.8M significantly strengthens the balance sheet and provides enhanced financial flexibility for future growth investments or shareholder returns.

Comparing 2026-02-26 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

EME delivered strong financial performance with operating income growing 27.4% to $1.7B and net income increasing 26.4% to $1.3B, while gross profit expanded 18.7% to $3.3B. The company's balance sheet strengthened considerably with total debt declining by nearly 99% and stockholders' equity growing 25.1% to $3.7B. The 19.7% increase in share buybacks to $586.3M demonstrates management's confidence in the business and commitment to returning capital to shareholders.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
-98.8%
$231.6M→$2.8M

Debt reduced 98.8% — deleveraging strengthens balance sheet and reduces financial risk.

Operating Income
P&L
+27.4%
$1.3B→$1.7B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Net Income
P&L
+26.4%
$1.0B→$1.3B

Net income grew 26.4% — bottom-line growth signals improving overall business health.

Stockholders Equity
Balance Sheet
+25.1%
$2.9B→$3.7B

Equity base grew 25.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.

SG&A Expense
P&L
+20.7%
$1.4B→$1.7B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Total Assets
Balance Sheet
+20.4%
$7.7B→$9.3B

Asset base grew 20.4% — expansion through organic growth, acquisitions, or capital deployment.

Share Buybacks
Cash Flow
+19.7%
$489.8M→$586.3M

Share repurchases increased 19.7% — management returning capital, signals confidence in intrinsic value.

Gross Profit
P&L
+18.7%
$2.8B→$3.3B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Accounts Receivable
Balance Sheet
+18.6%
$3.6B→$4.2B

Receivables grew 18.6% — monitor days sales outstanding for collection efficiency.

Total Liabilities
Balance Sheet
+17.6%
$4.8B→$5.6B

Liabilities increased 17.6% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-26
ADDED
On December 1, 2025, we sold our United Kingdom operations, the results of which are reported within our United Kingdom building services segment through the date of sale.
Of our 2025 revenues, approximately 97% were generated in the United States and approximately 3% were generated in the United Kingdom.
In 2025, we derived approximately 72% of our revenues from our construction operations, approximately 21% of our revenues from our building services operations, and approximately 7% of our revenues from our industrial services operations.
The demand for these services is typically driven by non-residential construction and renovation activity and, in recent years, has benefited from the expansion of data centers to power AI and cloud computing, the re-shoring of the supply chain, the need for additional high-tech manufacturing facilities, and the energy transition/expansion throughout the United States.
Our United States electrical and mechanical construction operations accounted for approximately 72% of our 2025 total revenues.
Of such revenues, approximately 42% were generated by our electrical construction operations and approximately 58% were generated by our mechanical construction operations.
Our projects of less than $10 million accounted for approximately 42% of our electrical and mechanical construction services revenues in 2025.
Our building services operations, which generated approximately 21% of our 2025 total revenues, provide services to owners, operators, tenants, and managers of all types of facilities.
Of our building services revenues for 2025, approximately 87% were generated in the United States and approximately 13% were generated in the United Kingdom.
As noted above, in December 2025, we sold our operations in the United Kingdom.
REMOVED
Forward-looking statements in this report include discussions of our future operating or financial performance and other forward-looking commentary regarding aspects of our business, including market share growth, gross profit, remaining performance obligations, project mix, projects with varying profit margins and contractual terms, selling, general and administrative expenses, our ability to maintain a strong safety record, and trends in our business, and other characterizations of future events or circumstances, such as the effects of supply chain disruptions and delays.
Of our 2024 revenues, approximately 97% were generated in the United States and approximately 3% were generated in foreign countries, substantially all in the United Kingdom.
In 2024, we derived approximately 67% of our revenues from our construction operations, approximately 24% of our revenues from our building services operations, and approximately 9% of our revenues from our industrial services operations.
The demand for these services is typically driven by non-residential construction and renovation activity and, in recent years, has benefited from the re-shoring of the supply chain, the need for additional high-tech manufacturing facilities, and the energy transition/expansion throughout the United States.
Our United States electrical and mechanical construction operations accounted for approximately 67% of our 2024 total revenues.
Of such revenues, approximately 34% were generated by our electrical construction operations and approximately 66% were generated by our mechanical construction operations.
Our projects of less than $10 million accounted for approximately 46% of our electrical and mechanical construction services revenues in 2024.
While not all of the above services are performed in both countries, we provide building services throughout the United States and United Kingdom.
Of our building services revenues for 2024, approximately 88% were generated in the United States and approximately 12% were generated in the United Kingdom.
While the building services industry is also highly fragmented, with most competitors operating in a specific geographic region, a number of large corporations such as Amentum Services, Inc., IAP Worldwide Services, Inc., Fluor Corporation, Cushman Wakefield plc, CBRE Group, Inc., Jones Lang LaSalle Incorporated, Sodexo, Inc., Aramark, and ABM Industries Incorporated are engaged in this field, as are large original equipment manufacturers such as Carrier Global Corporation and Trane Technologies plc.
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