EME to Divest EMCOR UK to Enhance Focus on U.S. Growth Strategy

EMCOR Group, Inc. EME has entered into a definitive agreement to sell EMCOR Group (UK) plc to OCS Group UK Limited. EMCOR UK is the company’s United Kingdom building services segment.The transaction values EMCOR UK at approximately £190 million, equivalent to $255 million at current exchange rates. The sale sharpens EMCOR’s focus on high-growth sectors in the United States and supports its “local execution, national reach” strategy.EME Divestment to Strengthen U.S. Construction and ServicesThe divestment of EMCOR UK will provide EME with funds to strengthen its electrical and mechanical construction and services businesses. The company also plans to pursue selective acquisitions to broaden its capabilities.EMCOR UK has developed expertise in complex technical environments. EME expects alignment with OCS to support a smooth transition and anticipates the divestment to improve its operating margin profile.EME Broadens Presence Across Key End-MarketsApart from the divestment, EMCOR has been building scale in its core businesses through selective acquisitions. As of the second quarter end, the company spent $887.2 million on M&A. These moves are helping the company expand in data centers, healthcare facilities and institutional projects, while also lowering reliance on any single market. By strengthening capabilities across construction and services, EMCOR is laying the groundwork for sustained long-term growth.In the first half of 2025, acquisitions added significantly to revenues, with Miller Electric making the biggest impact. The company invested heavily in M&A during the period, which has already boosted its order book. As of June 30, 2025, Remaining Performance Obligations were $11.91 billion, supported by both organic growth and contributions from Miller Electric. This rising backlog underscores EMCOR’s growing exposure to high-demand areas such as network infrastructure, manufacturing and institutional markets.EME’s Price PerformanceImage Source: Zacks Investment ResearchShares of EMCOR have gained 59.7% in the past six months compared with the Zacks Building Products - Heavy Construction industry’s growth of 58.9%. The company is benefiting from resilient demand for its services, mainly across network and communications, including data centers, healthcare, water and wastewater market sectors, fueled by the favorable public spending scenario.EME’s Zacks Rank & Other Key PicksCurrently, EMCOR sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the Construction sector are Everus Construction Group Inc. ECG, Tutor Perini Corporation TPC and Great Lakes Dredge & Dock Corporation GLDD, each flaunting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Everus Construction delivered a trailing four-quarter earnings surprise of 42.7%, on average. The Zacks Consensus Estimate for 2025 sales and EPS indicates growth of 18% and 3.9%, respectively, from the year-ago period’s levels. ECG stock has gained 21.4% year to date.Tutor Perini Group delivered a trailing four-quarter earnings surprise of 387.2%, on average. The Zacks Consensus Estimate for 2025 sales and EPS indicates growth of 21.2% and 220.8%, respectively, from the prior-year levels. TPC stock has jumped 167.7% year to date.Great Lakes Dredge & Dock delivered a trailing four-quarter earnings surprise of 45.3%, on average. The Zacks Consensus Estimate for 2025 sales and EPS indicates growth of 9% and 21.4%, respectively, from the prior-year levels. GLDD stock has gained 6.9% year to date.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Tutor Perini Corporation (TPC): Free Stock Analysis Report Everus Construction Group, Inc. (ECG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks