EMCOR Group, Inc.

Good morning. My name is Cindy and I will be your conference operator today. At this time, I would like to welcome everyone to the MCOR Group first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press the pound key. I will now turn the call over to Lucas Sullivan, Director, Financial Planning and Analysis. Mr. Sullivan, you may begin.

Thank you, Cindy. Good morning, everyone, and welcome to MCOR's first quarter 2026 earnings conference call. For those of you joining us by webcast, we are at the beginning of our slide presentation that will accompany our remarks today. This presentation will be archived in the investor relations section of our website at mcoregroup.com. With me today are Tony Guzzi, our Chairman, President, and Chief Executive Officer, Jason Albanian, Senior Vice President and Chief Financial Officer, and Maxine Mauricio. Executive Vice President, Chief Administrative Officer, and General Counsel. For today's call, Tony will provide comments on our first quarter 2026 and discuss our RPOs. Jason will then review the first quarter numbers, then turn it back to Tony to discuss our guidance before we open it up for Q&A. Before we begin, a quick reminder that this presentation and discussion contain certain forward-looking statements and may contain certain non-GAAP financial information. Slide 2 of our presentation describes in detail these forward-looking statements and the non-GAAP financial information disclosures. I encourage everyone to review both disclosures in conjunction with our discussion and accompanying slides. And finally, as a reminder, all financial information discussed during this morning's call is included in our consolidated financial statements within both our earnings press release issued this morning and in our Form 10-Q filed with the Securities and Exchange Commission. And with that, let me turn the call over to Tony. Tony?

Yeah, thanks, Lucas. And I'm going to start my discussion on pages three and four. Good morning and thanks for joining us today. I'm pleased to report another outstanding quarter for MCOR. Our first quarter 2026 results demonstrate the sustained momentum we have built over many years with strong execution across our business segments and continued growth in our core market sectors and geographies. In the first quarter, we generated revenues of $4.63 billion, representing year-over-year growth of 19.7% and organic growth of 16.8% when adjusting for incremental acquisition contribution and the sale of MCOR-UK. Operating income reached $404 million with an 8.7% operating margin, while diluting earnings per share of $6.84. represents an increase of 30% versus the first quarter of 2025. This reflects our strategic positioning in high growth markets and operational excellence across our construction and services platforms. These results demonstrate our customers continued confidence in MCOR as one of their partners of choice for complex mission critical projects. Our construction segments once again performed extremely well in the quarter. The electrical construction segment generated year-over-year revenue growth of 33.1% with a 12.1% operating margin, while the mechanical construction segment achieved 28.9% revenue growth with a 10.9% operating margin. This performance reflects the range of our capabilities across both trades and geographies. It also takes into account increased customer scope, and our reputation as one of the premier specialty contractors for complex, fast-paced projects. Our construction segment's growth was driven primarily by increased activity in networking and communications, which is where our data center business rests. Institutional, manufacturing and industrial, healthcare, and water and wastewater market sectors. Within our mechanical construction segment, we also benefited from increased commercial market sector revenues driven primarily by the resumption of demand for warehousing, distribution, and logistics projects. Our teams continue to leverage our prefabrication and our virtual design and construction capabilities, excellence in labor management and planning, large project coordination and execution, and a disciplined focus on contract negotiation, administration, and adherence to those terms. The U.S. building services segment delivered solid results, led by impressive performance in our mechanical services division. While we still placed slight revenue headwinds within our site-based business, we've begun to see the benefits of the restructuring on the comp side, which reduced overhead costs, and we have a more profitable contract portfolio mix. Our industrial services segment generated revenue growth of 6.4%, and that was driven by our field services division. Now I'm going to turn to page five. Our remaining performance obligation position strengthened significantly during the quarter, providing excellent visibility for sustained growth. Our RPOs totaled $15.62 billion at the end of the quarter versus $11.75 billion in the year-ago period. and 13.25 billion as of December 31, 2025. This represents year-over-year growth of 32.9% and sequential growth of 17.9%. These diverse RPOs reflect continued strong demand across many market sectors, with particularly robust activity in network accommodations or data centers, where we continue to expand our geographic footprint and scope of services to better serve our customers. We see no sign of slowing demand in this vertical, where customer investments in AI infrastructure, cloud infrastructure, and overall digital transformation are driving unprecedented levels of activity. We are pleased with the quality and diversity of our work booked outside of the data center space, including notable awards within water and wastewater as we continue to win new projects in Florida. institutional, driven by demand for upgraded lab space by certain colleges and universities, and healthcare, as our customers continue to monitor their facilities while seeking to make them more flexible and responsive. The strong operational and financial performance I've outlined demonstrate the effectiveness of our strategic initiatives and the depth of our execution capabilities. Our teams continue to deliver exceptional results for our customers, while maintaining disciplined financial management and operational excellence, and continued good contract negotiation and adherence to the contract terms we negotiate. With that context, I will turn it over to Jason, who will provide a detailed review of our first quarter financial results.