--- title: "EMCOR's data-center work hit $2.03 billion of a $5.54 billion quarter as mechanical margin fell to 12.1%" description: "EMCOR's first 10-Q to break revenue and backlog by market sector shows over $2.03 billion of a $5.54 billion quarter in network and communications work, converting at a mechanical margin that fell to 12.1% on cost-plus contracts." publisher: "The Inference" section: "Data Center" published: 2026-11-12T17:29:29.070Z modified: 2026-11-12T17:29:29.070Z canonical: https://theinference.org/article/emcor-s-data-center-work-hit-2-03-billion-of-a-5-54-billion-quarter-as-mechanical-margin-fell-to-12-1 language: en keywords: "EMCOR, Data Centers, Earnings, Construction, Backlog" --- # EMCOR's data-center work hit $2.03 billion of a $5.54 billion quarter as mechanical margin fell to 12.1% > EMCOR's first 10-Q to break revenue and backlog by market sector shows over $2.03 billion of a $5.54 billion quarter in network and communications work, converting at a mechanical margin that fell to 12.1% on cost-plus contracts. *[EMCOR](https://theinference.org/markets/companies/emcor)'s first 10-Q to break revenue and backlog by market sector shows over $2.03 billion of a $5.54 billion quarter in network and communications work, converting at a mechanical margin that fell to 12.1% on cost-plus contracts. This file is the first document to break out the sectors and the segment margin split; The Inference covered the acquisition spree on October 11 in "EMCOR spent $1.6 billion on electricians and issued no press release" (/article/emcor-spent-1-6-billion-on-electricians-and-issued-no-press-release).* ## A third of the quarter is one end market EMCOR's [10-Q, filed this month for the quarter ended September 30, 2026](https://earningsanatomy.com/blogs/emcor-eme-q3-2026-10q-data-center-revenue-backlog-analysis), splits record revenue by market sector, and the split is the story [1]. Network and communications work, the hyperscale data-center construction behind the AI buildout, was $1.05 billion in electrical construction, up 68% and 56% of that division, and $985.2 million in mechanical, up 128% [1]. Over $2.03 billion of the $5.54 billion quarter, more than a third, rides on one end market [1]. *Chart: **Revenue has climbed 61% since late 2023 to $5.54 billion a quarter** Line chart of EMCOR quarterly revenue from Q4 2023 to Q3 2026, rising from $3.44 billion to $5.54 billion, with the steepest rise in 2026* *EMCOR quarterly revenue, $ billions, Q4 2023 through Q3 2026. Source: EMCOR quarterly figures from its SEC filings, retrieved 12 November 2026. [6]* ## Backlog is a record $18.6 billion, and data centers are nearly half of it Remaining performance obligations hit $18.57 billion, up 47.2% from $12.61 billion, with $14.36 billion, 77%, due inside twelve months [1]. Data-center RPOs more than doubled to $8.74 billion, roughly 47% of the total [1][2]. ## The markup inside it is not The filing also shows what that work earns. Mechanical Construction revenue grew 43.1% while segment margin fell 80 basis points to 12.1%, because more of it is construction-manager, prime-contractor and cost-plus work, which caps markups; electrical margin rose 200 basis points to 13.3% [1][2]. The quarter also carried $20.1 million of negative contract-profitability adjustments and a $34.0 million non-cash impairment [1]. *Chart: **Mechanical Construction margin slid to 12.1% while electrical widened to 13.3%** Q3 2026 segment operating margins: Electrical Construction 13.3%, Mechanical Construction 12.1%, Building Services 7.8%* *Segment operating margins, Q3 2026. Sources: Earnings Anatomy 10-Q analysis; Zacks via Ainvest. [1][2]* ## Growth was bought as well as built, and guidance is $20.6 billion to $21 billion Nine-month revenue growth of 22.9% was 20.8% organic after $809.9 million of upfront consideration for nine acquisitions that added about $717 million of revenue, the same buy-and-build drive the October 11 piece tracked at $1.6 billion of electrician deals [1][3]. EMCOR now guides to $20.6–21.0 billion of 2026 revenue and $34.50–35.50 of adjusted EPS; Zacks reports it expects a full-year adjusted operating margin of at least 10% [2][3]. ## The market has already voted The stock closed at $666.74 on November 11, down 17.2% in a month and 34.6% in six months, on fear that data-center permitting slows after the midterm elections [3][5]. JPMorgan [initiated at Neutral on November 10 with a $700 target](https://www.marketscreener.com/news/jpmorgan-initiates-emcor-at-neutral-with-700-price-target-ce785edada8cf52c) against a sell-side average of $884.11 [4]. Insiders sold $39.9 million of stock over twelve months with no purchases [5]. Whether that fear proves out is exactly what no document in the file yet establishes; the sector table says only that if data-center work pauses, a third of the revenue and half the backlog go with it. ## Takeaway Data-center construction is more than a third of EMCOR's revenue and nearly half its record $18.57 billion backlog, but the mechanical margin on that work fell to 12.1% as cost-plus and construction-manager contracts grew. ## Sources 1. [Earnings Anatomy, EMCOR Q3 2026 10-Q Analysis: Data Centers Drive 28.8% Revenue Surge and Record $18.6B Backlog, 12 November 2026](https://earningsanatomy.com/blogs/emcor-eme-q3-2026-10q-data-center-revenue-backlog-analysis) 2. [Zacks via Ainvest, Can EMCOR Keep Its 10.5% Adjusted Margin as Project Volumes Scale?, 9 November 2026](https://www.ainvest.com/fr/news/emcor-10-5-adjusted-margin-project-volumes-scale-2611/) 3. [Zacks via TradingView, EMCOR Stock Plunges 17% in a Month: Buy the Low Now or Wait?, November 2026](https://www.tradingview.com/news/zacks:7523e7b33094b:0-emcor-stock-plunges-17-in-a-month-buy-the-low-now-or-wait/) 4. [MarketScreener, JPMorgan Initiates EMCOR at Neutral With $700 Price Target, 10 November 2026](https://www.marketscreener.com/news/jpmorgan-initiates-emcor-at-neutral-with-700-price-target-ce785edada8cf52c) 5. [GuruFocus, EMCOR Group Inc (EME) Stock Up 3.3% and Still Undervalued, GF Score 96/100, 11 November 2026](https://www.gurufocus.com/news/9193573/emcor-group-inc-eme-stock-up-33-and-still-undervalued-gf-score-96100) 6. [Emcor, quarterly figures from its SEC filings, retrieved 12 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000105634) --- EMCOR's data-center work hit $2.03 billion of a $5.54 billion quarter as mechanical margin fell to 12.1% — The Inference. 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